The European Securities and Markets Authority (ESMA) has decided to temporarily lower the reporting threshold for net short positions in shares admitted to trading in a regulated market from 0.2% to 0.1% of a company’s issued share capital. The new reporting threshold will apply for a period of three months starting from 16 March 2020.
The lowered threshold reflects that ESMA and the national competent authorities in the current market conditions wants to have better data when assessing the size of net short positions. The change is based on the short selling regulation, article 28.
The reduction in the reporting threshold means that any natural or legal person who has a net short position in a share shall notify the relevant competent authority where the position reaches or falls below the threshold of 0.1% of the issued share capital of the company and each 0.1% above that.
The reduction in the reporting threshold means that any natural or legal person who has a net short position in a share shall notify the relevant competent authority where the position reaches or exceeds the threshold of 0.1% of the issued share capital of the company. Furthermore, the net position shall also be reported when the position falls below 0.1%. In addition, changes in the net short position shall be reported when the position reaches, exceeds or falls below each 0.1% above the new reporting threshold at 0.1%, i.e. there shall be reporting if the net short position changes from e.g. 0.15% to 0.22% of the issued share capital of the company.
The measure only applies if positions reach or exceed the 0.1% threshold after the entry into force.
Notification to the relevant competent authority regarding the net short position must be made no later than at 3:30 pm on the following trading day.
Reporting to the Danish FSA
Net short positions in shares admitted to trading on a regulated marked in Denmark must be reported to the Danish FSA. The positions can be reported here.
If you are a foreign natural or legal person who has made no previous reporting’s to the Danish FSA you need to register before you can report. You can register here.
If you have any questions in relation to report a net short position or if you have any questions on how to register as a foreign natural or legal person you can find further information here.
Further information regarding the lowered reporting threshold can be found here.