Short selling has implications for SEB and EMCF
13 July 2012 Sweden
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The European cash equities clearing company EMCF published a letter to clients on short selling.
"We would like to bring the implementation of the EU Regulation on short selling to your attention. The parts relevant to our services relate to the implementation of a daily fail fee regime and to comply with a pre-described buy-in procedure.
"All details of these components are described within article 15 and 16 of mention regulation and needs to be effective as per 1 November 2012.”
The EMCF is a CCP for trades done at NASDAQ OMX and Burgundy in Denmark, Finland, Norway and Sweden.
SEB commented of the letter: “As EMCF usually follows the incumbent CCP deadlines when it comes down to buy-in rules for the variety of market segments we are servicing, we have changed our regulation buy-ins for the IE, UK and IDR segment in accordance with the publication from LCH.Clearnet last month.
“This new regulation buy-in comes into force as of 30 July 2012. Since EMCF is the incumbent CCP for the Nasdaq OMX markets in Denmark, Finland and Sweden, we will set out proposals following discussions with respective markets and securities dealer associations. We expect to be able to share more details with you and on the new fail fees, by the end of August."
"We would like to bring the implementation of the EU Regulation on short selling to your attention. The parts relevant to our services relate to the implementation of a daily fail fee regime and to comply with a pre-described buy-in procedure.
"All details of these components are described within article 15 and 16 of mention regulation and needs to be effective as per 1 November 2012.”
The EMCF is a CCP for trades done at NASDAQ OMX and Burgundy in Denmark, Finland, Norway and Sweden.
SEB commented of the letter: “As EMCF usually follows the incumbent CCP deadlines when it comes down to buy-in rules for the variety of market segments we are servicing, we have changed our regulation buy-ins for the IE, UK and IDR segment in accordance with the publication from LCH.Clearnet last month.
“This new regulation buy-in comes into force as of 30 July 2012. Since EMCF is the incumbent CCP for the Nasdaq OMX markets in Denmark, Finland and Sweden, we will set out proposals following discussions with respective markets and securities dealer associations. We expect to be able to share more details with you and on the new fail fees, by the end of August."
NO FEE, NO RISK
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