- Proposed amendments for controversial areas of short-selling regulation (SSR).
- Aims to improve relevance, effectiveness, coherence, and efficiency of the SSR.
- SSR lays down common regulatory framework for powers on short sales, CDS.
- Aims to ensures greater coordination and consistency between Member States.
- Enhance transparency, reduce certain risks, and common regulatory approach.
Market Making Exemption
- Proposes will include addition of the different types of on-venue market making
activities described in MiFID II within the definition of ‘market-making activities.
- Market makers only need to be member or participants, of only one of the trade
venues where market-making activity takes place, do not need for all of them.
- Do not require any membership requirements, for OTC market-making activity.
- ESMA also suggested introducing new reporting obligations for market makers.
Bans on Short-Selling
- Recommended only authority of most relevant market to impose ban across EU.
- Transform current short sale bans into entering or increasing net short positions.
Transparency of Short Positions
- Improvements building a centralized notification and publication system for EU.
- ESMA supported requiring the LEI, for identification of certain position holders.