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EU Short Selling Regulations: Difference between revisions
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What is a [[naked short]]? | {{a|gmsla|}}What is a [[naked short]]? | ||
===Press Release=== | |||
The [[European Commission]] has today set out the detailed rules aimed at reducing the risk of settlement failures linked to naked [[short selling]], as well as the means by which market participants should disclose significant short positions to the market. The technical standards adopted today by the Commission are based on the work of the [[European Securities and Markets Authority]] ('''{{tag|ESMA}}'''). They notably specify the details of the so-called “'''[[locate]] rule'''” which ensures that short sales do not result in a failure to deliver. | |||
The [[European Commission]] has today set out the detailed rules aimed at reducing the risk of settlement failures linked to naked [[short selling]], as well as the means by which market participants should disclose significant short positions to the market. The technical standards adopted today by the Commission are based on the work of the [[European Securities and Markets Authority]] ('''{{tag|ESMA}}'''). They notably specify the details of the so-called | |||
The new rules also detail how [[ESMA]] is to determine the shares which are exempt from the Short Selling Regulation by virtue of their principal trading venue being outside the Union. Together with the Short Selling Regulation that they implement, the regulations adopted today will create a more transparent, orderly and stable market by reducing the risks tied to short selling. | The new rules also detail how [[ESMA]] is to determine the shares which are exempt from the Short Selling Regulation by virtue of their principal trading venue being outside the Union. Together with the Short Selling Regulation that they implement, the regulations adopted today will create a more transparent, orderly and stable market by reducing the risks tied to short selling. | ||
Internal Market and Services Commissioner Michel Barnier said: | Internal Market and Services Commissioner Michel Barnier said: “The new rules give public authorities and market participants legal certainty on the detailed requirements which short sellers must comply with to adequately ensure the settlement of shares or sovereign debt when this is due. The technical requirements on how to disclose significant short positions are also set out, so that market participants can prepare to apply the Short Selling Regulation as of 1 November 2012." | ||
===Background=== | |||
The Implementing Regulation details technical rules on the following issues to ensure the consistent application of the Short Selling Regulation: | The Implementing Regulation details technical rules on the following issues to ensure the consistent application of the Short Selling Regulation: | ||
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The Delegated Regulation on regulatory technical standards is subject to a one-month objection period by the European Parliament and the Council, which can be extended by one month, and will only enter into force, provided that neither co-legislator objects, at the end of this period and the day following publication in the Official Journal. | The Delegated Regulation on regulatory technical standards is subject to a one-month objection period by the European Parliament and the Council, which can be extended by one month, and will only enter into force, provided that neither co-legislator objects, at the end of this period and the day following publication in the Official Journal. | ||
{{sa}} | |||
*[[Covered short]] | |||
*[[Naked short]] | |||