Reporting threshold for net short positions permanently lowered to 0.1%
On 27 September 2021, the European Commission adopted the proposal made by ESMA in May to permanently lower the reporting threshold for net short positions (NSPs) from 0.2% to 0.1%, and the Commission Delegated Regulation was published in the Official Journal on 11 January 2022. The Commission Delegated Regulation (EU) 2022/27 will enter into force on Monday 31 January 2022.
On 26 January, ESMA issued a statement with practical instructions for reporting NSPs when the reporting threshold changes. According to ESMA’s instructions, position holders are required to report NSPs between 0.1% and 0.2% on the day of application of the 0.1% reporting threshold, even where they were entered into ahead of that date, to the competent authority on 1 February 2022.