The European Securities and Markets Authority has published an updated version of its Q&A on the Application of the Short Selling Regulation.

The purpose of the Q&A is to promote common supervisory approaches and practices amongst the EU’s national securities markets regulators on the requirements of the Short Selling Regulation, that came into force on 1 November 2012.  It will also provide clarity on the requirements of the new regime to market participants and investors.

Additional Q&As complement the sections relating to the scope of the Regulation including the treatment of ETFs and ADRs/GDRs, the calculation of net short position, the calculation and reporting for the specific situation of group and fund management activities and the treatment of derivatives on sovereign debt with respect to duration adjustment issue. Besides, a full new section is now dedicated to the application of the restriction on uncovered CDS positions.