EU Net Short Position Disclosure Threshold Lowered To 0.1% From 31 January 2022

The European Commission has published rules to permanently lower the initial net short position reporting threshold from 0.2 per cent to 0.1 per cent under the EU Short Selling Regulation (EU SSR). The lower disclosure threshold of 0.1 per cent takes effect on 31 January 2022. We reported on this and the UK Financial Conduct Authority's (FCA) lowering of the threshold permanently to 0.1 per cent in earlier alerts which can be viewed here and here.

Any net short positions that reach or exceed the new 0.1 per cent threshold on 31 January 2022 will need to be notified to the relevant competent authority before 3.30 pm local time on 01 February 2022.

Managers should update their operational and compliance systems to ensure that they incorporate the lower threshold as necessary.