13/09/2012

The European Securities and Markets Authority (ESMA) has published a Q&A on the Implementation of the Regulation on short selling and certain aspects of credit default swaps.

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 once it comes into force on 1 November 2012.  It will also provide clarity on the requirements of the new regime to market participants and investors.

Issues addressed by the Q&A
The document provides responses to questions posed by market participants, national securities markets regulators, and the general public in relation to the practical application of the forthcoming Short Selling regime.  It addresses issues related to:

•    territorial scope;
•    transparency requirements;
•    calculation of net short positions;
•    uncovered short sales;
•    and enforcement regime.

Further Information
The document is likely to be revised and updated before 1 November as new questions are received by ESMA.

Technical queries on the application of the new regime should be addressed in writing to shortselling@esma.europa.eu, while further information can be found here.