ESMA updates its Q&A on short selling
The European Securities and Markets Authority (ESMA) has updated today its Questions & Answers (Q&A) document regarding the implementation of the Short Selling Regulation (SSR).
The purpose of the Q&A document is to promote common supervisory approaches and practices in the application of SSR. Today’s Q&A include an update of the Q&A on uncovered short sales further specifying cases in which rights to subscribe for new shares cannot be used to cover a short sale.
The SSR is intended to reduce, inter alia, settlement risks and other risks linked with uncovered or naked short selling carried out by investors.