EU Regulatory Response To COVID-19: ESMA Introduces Lower Short Position Reporting Threshold

European Securities and Markets Authority Takes Steps to Improve Transparency in Light of Disruption to EU Financial Markets Arising from COVID-19 Pandemic

Effective 16 March 2020, all holders of net short positions in shares traded on an EU regulated market (i.e. exchange) must notify the relevant national regulators if the position reaches or exceeds 0.1% of the issued share capital.¹ The changes to the disclosure threshold from 0.2% to 0.1% follows the publication by the European Securities and Markets Authority (ESMA) of a Decision issued by it using powers granted to it under the EU Short Selling Regulation (SSR).² The Decision requires net short position holders to notify the relevant national regulator from the end of the trading day on Monday, 16 March 2020, of any net short position of 0.1% of the issued share capital of a company and of each 0.1% above that threshold.