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ESMA Updates Q&As Relating to Short-Selling Regulation
On November 14, the European Securities and Markets Authority (ESMA) published its updated questions and answers document (Q&As) on the implementation of the Short-Selling Regulation (SSR).
ESMA has added a new Q&A, 4.10, which clarifies that as a result of the revised Markets in Financial Instruments Directive (MiFID II) and the Markets in Financial Instruments Regulation (MiFIR), Commission Delegated Regulation (EU) 2017/590 should be followed for the reporting of transactions to competent authorities. Previously, identification of the relevant competent authority was made under Commission Implementing Regulation 1287//2006. Consequently, the relevant competent authority for SSR purposes coincides with the national competent authority of the most liquid market in terms of liquidity for transaction reporting purposes, as published by ESMA under the Financial Instrument Reference Data section of its website.
The purpose of the Q&As is to promote common, uniform and supervisory approaches and practices in the application of the SSR.
The updated Q&As on the SSR are available here.
ESMA Updates Q&As Relating to Transparency and Market Structures
On November 14, the European Securities and Markets Authority (ESMA) published the following updated questions and answers document (Q&As):
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an updated version of the Q&As on transparency topics under the revised Markets in Financial Instruments Directive (MiFID II) and the Markets in Financial Instruments Regulation (MiFIR). ESMA has added two points to Q&A 7 and modified Q&A 10 in section 2 of the Q&As (General Q&As on transparency topics), and added a new Q&A 11 to section 7 (the systematic internalizer regime); and
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an updated version of the Q&As on market structures topics under MiFID II and MiFIR. ESMA has added a new Q&A 29 to section 3 (direct electronic access and algorithmic trading).
The updated Q&As on transparency topics are available here.
The updated Q&As on market structures topics are available here.
ESMA Updates Q&As Relating to the Market Abuse Regulation
On November 12, the European Securities and Markets Authority (ESMA) published version 13 of its questions and answers document (Q&As) on the Market Abuse Regulation (MAR).
The Q&As now include a new question, 7.10, relating to the scope of the trading restrictions for persons discharging managerial responsibilities (PDMRs) during a closed period under MAR. ESMA clarifies that the prohibition in MAR does not encompass transactions of the issuer relating to its own financial instruments, even if the PDMRs themselves are making the decision or putting a previous decision into practice. When a PDMR acting in its capacity as a director or employee of the issuer, such actions are not PDMR transactions for a third-party account, but are instead transactions of the issuer itself, therefore the prohibition does not apply.
The Q&As, however, point out that any transaction carried out by the issuer during a closed period should be considered carefully, as the issuer remains subject to the prohibition under MAR of insider trading. Therefore, if the issuer is in possession of inside information relating to its own financial instruments, the issuer will be prevented from trading on them unless it had established, implemented and maintained the internal amendments and procedures identified in MAR.
Version 13 of ESMA’s Q&As on MAR is available here.
