Sweden to launch digital reporting tool for short sellers
01 July 2020 Stockholm
Image: DevrimPINAR/Shutterstock.com
Sweden’s Financial Conduct Authority (FI) has outlined plans to scrap email and paper-based disclosures of net short positions with the launch of a new digital reporting tool.
The short selling online reporting tool is set to launch in Autumn and will act as a database for all reported short positions.
The tool's primary advantage is that it offers a more efficient system for maintaining data integrity by making it possible to see into the system of positions that were reported earlier and recall incorrectly reported positions, according to FI.
Users will be able to log in with a Bank ID or via SMS via the authority’s reporting portal, which is the hub for all reporting, and will no longer be able to report positions via email.
The regulator is recommending that market participants prepare for the transition by creating user accounts in the reporting portal and delegating authorisation to persons who will report on behalf of the position holders.
Swedish companies are registered by entering their company identification number, and foreign companies are registered by submitting a digital form.
In both cases, the LEI code is mandatory. The LEI code is provided during the registration process for a foreign firm but, for Swedish companies, it needs to be provided by an authorised signatory after the registration is completed.
The information is then retrieved from the Swedish Companies Registration Office. Once this is done, the authorised signatory is automatically assigned the role "authorised signatory" in the system and can delegate authorisation to the rapporteurs.
The short selling online reporting tool is set to launch in Autumn and will act as a database for all reported short positions.
The tool's primary advantage is that it offers a more efficient system for maintaining data integrity by making it possible to see into the system of positions that were reported earlier and recall incorrectly reported positions, according to FI.
Users will be able to log in with a Bank ID or via SMS via the authority’s reporting portal, which is the hub for all reporting, and will no longer be able to report positions via email.
The regulator is recommending that market participants prepare for the transition by creating user accounts in the reporting portal and delegating authorisation to persons who will report on behalf of the position holders.
Swedish companies are registered by entering their company identification number, and foreign companies are registered by submitting a digital form.
In both cases, the LEI code is mandatory. The LEI code is provided during the registration process for a foreign firm but, for Swedish companies, it needs to be provided by an authorised signatory after the registration is completed.
The information is then retrieved from the Swedish Companies Registration Office. Once this is done, the authorised signatory is automatically assigned the role "authorised signatory" in the system and can delegate authorisation to the rapporteurs.
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