ESMA_QA_1891
13/09/2012
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Subject Matter
Shares of companies in scope
Do shares of all companies traded on markets in the Union fall under the net short position notification and disclosure requirements under Articles 5 and 6, and the restriction on uncovered short sales of Article 12 of the regulation?
ESMA Answer
13-09-2012

[ESMA70-145-408 SSR Q&A, Q&A 4.4]

When determining whether the shares of an issuer fall under the regime, two cumulative conditions have to be taken into account:

  • the shares are admitted to trading/traded on a trading venue (i.e. regulated market or MTF) in the Union;
  • the principal trading venue for the share is in the Union (and not in a third country in case of multiple trading).

For instance, shares of a company domiciled in the USA which are admitted to trading on a trading venue in Germany but whose principal trading venue is located in the USA are exempt from the notification/disclosure requirements (Articles 5 and 6 of the Regulation), the restrictions on uncovered short sales (Article 12) and from the buy-in procedures (Article 15 of the Regulation).

Status: Answer Published

Additional Information

Level 1 Regulation
Short Selling Regulation (SSR) Regulation (EU) No 236/2012
Topic
Scope