September 28, 2020

Volume X, Number 272

September 25, 2020

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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 These bans are now no longer in effect.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 2020 Cadwalader, Wickersham & Taft LLPNational Law Review, Volume X, Number 140


About this Author

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

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.

Joanna received her B.A. in Jurisprudence from the University of Oxford, Certificat en Droit Français from the University of Paris (Pantheon-Assas) and a LL.M. in Corporate Law from New York University School of Law.

Recent experience include:

  • Lightyear Capital as seller on disposition of Lloyds of London insurer and reinsurer Antares Holdings to Qatar Insurance Company following competitive auction process;
  • EQT on sale of its portfolio company Dako, a Danish cancer diagnostics company, to Agilent Technologies for US$2.2 billion;
  • Swedish telecoms provider Telia Company on multi-stage planned disposition of Eurasian assets in a complex set of transactions;
  • U.S. public company SS&C as buyer on its US$95 million acquisition under English law of DST Systems’ worldwide Global Solutions business;
  • Multi-investor complex joint acquisition and shareholder arrangements relating to private equity majority investment in Union Bank of Nigeria;
  • Telecom Italia on its multi-step US$960 million disposition of its Argentinean operations;
  • Tailwind Capital on UK bolt-on acquisition in the AV services and equipment supply sector;
  • FolioDynamix, US wealth management technology provider, in its acquisition by Actua Corporation for approximately US$199 million;
  • Strategic alliance arrangement between US and UK private equity investors Crestview and Aleph Capital to collaborate on European investments;
  • Edwards Group Limited, a UK manufacturer of vacuum products, on its US$1.6 billion merger with a subsidiary of Atlas Copco AB;
  • Citibank on the sale of several portfolios of loan assets including auto loan assets, non-performing real estate loans and multifamily and commercial real estate loans;
  • Joint venture structure providing for collaboration on identification of and investment in state entity-related claims for US private equity client in Latin America;
  • Chinese multinational investment holding company Tencent on its acquisition of a controlling stake in games-maker Miniclip;
  • Brazil’s EBX Group on strategic investments by Mubadala Development Corporation;
  • Goldman Sachs on equity financing for private company bidder acquiring US public company retailer in a multi-billion dollar acquisition; and
  • Tele2 on the sale of its Russian telecoms business to VTB Group in a US$2.4 billion transaction.
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...

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