EU Net Short Position Disclosure Threshold Lowered To 0.1%

The European Commission has revised rules to permanently lower the net short position reporting threshold from 0.2 per cent to 0.1 per cent under the EU Short Selling Regulation ("EU SSR"). The net short position notification requirements under the EU SSR apply to investment managers within and outside the EU with respect to shares of any issuer admitted to trading on an EU trading venue unless the shares are excluded  ¹("EU Issuer").

Summary

The EU SSR requires that the net short position of a person in an EU Issuer be disclosed when it reaches reach, exceed or fall below at least 0.1 per cent of the issued share capital of an EU Issuer, and every 0.1 per cent thereafter.

The new rules will enter into force on the twentieth day following the publication of the Delegated Regulation (see here) in the Official Journal of the European Union ("Official Journal"). As of the date of this alert, the Delegated Regulation has not been published in the Official Journal.