On 16 March 2020, the European Securities and Markets Authority (“ESMA”) issued a decision which temporarily requires holders of net short positions in shares traded on European Union regulated markets to notify the relevant national competent authority (“NCA”) if the position reaches or exceeds 0.1% of the issued share capital (see link here).
The measure applies immediately, requiring net short position holders to notify NCAs of their relevant positions as at the close of the trading session on Monday 16 March 2020. The measure shall have a duration of three months and may be extended if necessary.
The decision is part of the precautionary actions related to the ongoing COVID-19 pandemic. ESMA considers that lowering the reporting threshold – the notification threshold was 0.2% – is essential for authorities to monitor developments in the markets.
The temporary transparency obligations apply to any natural or legal person, irrespective of their country of residence. They do not apply to shares admitted to trading on a regulated market where the principal venue for the trading of the shares is located in a third country, market making or stabilisation activities.
We will continue to closely monitor the legal developments and regulatory recommendations with respect to the COVID-19 situation and provide updates where appropriate.
More about the coronavirus
You can read more publications on the impact of the coronavirus on our website. Here you will also find a list of contacts within our organisation who can advise you with questions about the implications of the coronavirus for your company.