September 26, 2021

Volume XI, Number 269

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September 24, 2021

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COVID-19 Update: An End to Temporary Restrictions on Short Selling in the European Union

Further to our Clients and Friends Memorandum of 22 April 2020, on 18 May 2020 the European Securities and Markets Authority (“ESMA”) issued a press release on the non-renewal of and termination of short selling bans by the following national competent authorities (“NCAs”): Austria's Finanzmarktaufsicht (FMA) Belgium's Financial Securities and Markets Authority (FSMA); France's Autorité des Marchés Financiers (AMF); Greece's Hellenic Capital Market Commission (HCMC); Italy's Commissione Nazionale per le Società e la Borsa; and Spain's Comisión Nacional del Mercado de Valores (CNMV).

The NCAs referred to above previously announced temporary short selling bans (permitted under the EU Short Selling Regulation’s emergency provisions) in mid-March 2020, which were subsequently renewed in April 2020. These bans are now no longer in effect. The non-renewal and termination measures come as a result of the reduction in the market volatility in the financial markets that had been caused by the onset of the COVID-19 pandemic.

The press release also highlighted that the net short position reporting threshold under the EU Short Selling Regulation remains at the lowered level of 0.1% per the ESMA decision on 16 March 2020.

© Copyright 2021 Cadwalader, Wickersham & Taft LLPNational Law Review, Volume X, Number 140
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About this Author

David Quirolo, Capital Markets Attorney, Cadwalader, London Law firm
Partner

David Quirolo is a partner in Cadwalader’s Capital Markets Group, resident in the London office. Focusing his practice primarily on CLOs, securitisation and repackaging transactions involving various asset types in the United States and Europe, David represents banks, arrangers and asset managers in a variety of structured finance transactions. 

+44 (0) 20 7170 8635
Joanna Valentine Corporate Attorney
Special Counsel

Joanna Valentine is Special Counsel in the Corporate Group at Cadwalader, Wickersham & Taft LLP.  

Her practice involves advising domestic and international clients in a broad range of complex corporate transactions across diverse sectors.  She specialises in mergers and acquisitions, including private equity transactions of all types, acquisitions and divestitures, majority, minority and consortium investments, joint ventures and shareholder arrangements, as well as other corporate finance transactions and corporate governance advice. She practices both English and New York law...

+44-0-20-7170-8640
Michael Sholem Finance Lawyer Cadwalader
Special Counsel

Michael Sholem is a special counsel in the Financial Services Group in Cadwalader’s London office. Michael has broad experience acting for banks, fund managers and financial technology firms in relation to financial regulatory issues.

Michael’s practice focuses on the supervision and regulation of banks, investment firms, payment institutions and asset managers, including in connection with new authorisations, changes of control, corporate governance and regulatory investigations. His practice has also included advising non-financial groups on the impact of new regulation, with a...

T.+44 (0) 20 7170 8545
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