ESMA introduces short-selling regulation document
23 October 2012 Paris
Image: Shutterstock
The European Securities and Markets Authority (ESMA) has released a question and answer document to help authorities, investors and other market participants better understand the European short selling regulatory regime being implemented on 1 November 2012.
ESMA’s regulation document will provide responses to questions posed by the industry and offer clarity on the requirements which will be introduced under the short selling framework.
Subjects covered in the paper include transparency and calculating of net short positions, uncovering short sales and enforcement of the regulation itself.
The document will be continually updated as new queries arise.
“The objectives of this short selling legislative framework are to increase transparency of short positions held by investors in certain EU securities, reduce settlement and other risks linked with uncovered or naked short selling and create a harmonised framework for coordinated action at European level,” stated the ESMA document.
ESMA’s regulation document will provide responses to questions posed by the industry and offer clarity on the requirements which will be introduced under the short selling framework.
Subjects covered in the paper include transparency and calculating of net short positions, uncovering short sales and enforcement of the regulation itself.
The document will be continually updated as new queries arise.
“The objectives of this short selling legislative framework are to increase transparency of short positions held by investors in certain EU securities, reduce settlement and other risks linked with uncovered or naked short selling and create a harmonised framework for coordinated action at European level,” stated the ESMA document.
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