On 15 March 2021, EFTASA said it will not renew decision requiring disclosure of net short positions of 0.1% and over, thus the decision will will expire on 19 March 2021.
- Announcement, in coordination with ESMA, means reporting threshold for net short positions will revert to 0.2% of the issued share capital of companies whose shares are admitted to trading on a regulated market in the EEA, as it was prior to Covid crisis.
- Natural/legal persons with net short positions reaching/exceeding this must notify NCA, last reports where 0.1% applies must be made to NCAs by 15.30, 22 March 2021.
- EFTASA took this decision because GDP forecasts show moderate optimism for recovery, volatility decreasing and main EU stock indices close to pre-pandemic levels.
- Thus, current situation in financial markets no longer resembles the emergency situation required by the short selling regulation to maintain the measure.