E.U. – Short Sale Market-Making

E.U. – Short Sale Market-Making

On 3 December 2019, EU ESMA published compliance table re guidelines on short-selling.


On 1 February 2019, ESMA issued guidelines on short selling exemption for market making.

  • Criteria to be met for market making exemption, and conditions to assess notification.
  • Market maker to be member of venue that trades instrument, conducts market making.
  • Qualifying criteria to be considered by authority which received notification of intent.
  • Will determine, in the assessment, whether to allow applicant to use exemption or not.
  • Notification of intent to use exemption and its content, including notification template.
  • Standards that authorities should take into account to assess notifications it receives.
  • Defines which authority to be notified, single entry point for entity from 3rd countries.
  • Notifications made before guidelines in effect, will be reviewed within 6 months.

Effective Date

  • Authorities must notify ESMA whether they comply or intend to comply with guidelines.
  • 2 April 2013, ESMA issued guidelines on exemption for market making re short selling.
  • Guidelines applicable two months after translations into all EU languages published.

ESMA Compliance Table

  • On 19 June 2013, ESMA issued compliance table on use of market making exemption.
  • Table indicates country declarations on status of implementation of ESMA guidelines.
  • Lists countries declaring that they comply or intend to comply, and those which do not.
  • ESMA published explanations from countries that had indicated their non-compliance.
  • Not complying: Denmark DFSA, Germany BaFin, France AMF, Sweden FI, UK FCA