• ESMA published statement to clarify how to report net short positions (NSPs) between January 28 and 31, 2022, when the short selling reporting threshold changes from 0.2% to 0.1%.
• Follows EU CMSN September 2021 adopted regulation short selling threshold.

Statement

• Provides background of change to lowered threshold, stages towards implementation.
• Last day of use of 0.2% reporting threshold in relation to Friday, 28 January 2022, with NSPs reported to relevant competent authorities (RCAs) by 15.30 of next trading day.
• From Monday, 31 January, 2022 onwards, position holders will have to report when their NSPs in shares exceed or equal to 0.1% of issued share capital, each 0.1% above that.
• Statement requires position holders to report short selling between 0.1% and 0.2% on day of application of the 0.1% reporting threshold, even when entered ahead of that date.
• To give RCAs full picture of NSPs above new threshold, otherwise would be incomplete.
• The statement also includes practical examples on when and how to report NSPs.