iOn March 15, the European Securities and Markets Authority (ESMA) announced its decision not to renew the requirement for holders of net short positions in shares traded on an EU regulated market to inform the relevant national competent authority (NCA) if the position reaches, exceeds or falls below 0.1 percent of the issued share capital (the Press Release).
The 0.1 percent net short reporting requirement expires on March 19. Therefore, the last reporting where this measure applies will relate to March 19 and must be reported to NCAs by 15:30 (local time in the relevant EU country) on March 22.
From March 20, positions holders will only need to notify the applicable NCA if they reach or exceed the 0.2 percent net short threshold. Any outstanding net short position between 0.1 percent and 0.2 percent does not require reporting.
ESMA has stated that along with NCAs, it will continue to monitor the impact of the COVID-19 pandemic on financial markets and is prepared to use its powers if necessary to stabilize the markets and protect investors.
