Reporting threshold for net short positions returns to 0.2%
The European Securities and Markets Authority (ESMA) has decided not to renew its decision to temporarily lower the reporting threshold for net short positions from 0.2 per cent to 0.1 per cent. ESMA considers that the current situation in the financial markets no longer meets the definition of emergency situation required by the Short Selling Regulation and that therefore grounds for a temporary reduction of the reporting threshold no longer exist.
ESMA’s decision on the temporary reduction of the reporting threshold entered into force on 16 March 2020. The decision was valid for three months and it was renewed in June, September and December 2020. The last renewed decision expires on 19 March 2021, and short positions on that day must be reported to NCAs by 15.30 of Monday, 22 March 2021. As of 20 March 2021, the reporting threshold will be 0.2 per cent of the issued share capital.