ESMA will not renew its decision to require short selling reporting on positions of 0.1% and above

ESMA will not renew its decision requiring holders of net short positions in shares traded on EU regulated markets to notify national competent authorities if the position reaches, exceeds or falls below 0.1% of the issuer’s share capital.

ESMA will not renew its decision to require short selling reporting on positions of 0.1% and above
March 29, 2021

ESMA will not renew its decision requiring holders of net short positions in shares traded on EU regulated markets to notify national competent authorities if the position reaches, exceeds or falls below 0.1% of the issuer’s share capital.

ESMA adopted this decision on March 16, 2020, and renewed it in June, September and December 2020. However, the decision expired on March 19 this year and ESMA did not renew it, considering that financial markets’ current circumstances greatly differ from the emergency situation justifying the requirement of short selling reporting.

Consequently, from March 20, short position holders must only notify the competent supervisor if the position reaches or exceeds 0.2% of the issuer’s share capital. Investors will not be required to report on net short positions ranging between 0.1% and 0.2%.

March 29, 2021