On 21 June 2022, FR AMF published an updated version of their webpage, now titled Short Selling Regulations (VAD) setting out details of the provisions and obligations.
- It confirms that the provisions under the regulations are for a transparency regime for short selling, as well as strengthened location requirements for securities sold short.
- In addition to this, the regulations also prohibit the purchase of any sovereign Credit Default Swaps (CDS) that do not cover a correlated exposure, to reduce various risks.
- It also details the reporting requirements by any natural or legal person that are holding a net short position equal to or greater than 0.1% of the capital of a company.
- When the declared net short position is equal to or greater than 0.5% of the capital of a company, the competent authority will then need to make this information public.
- FR AMF also provides the public with a daily file of historical data on net short positions published on each issuer under its jurisdiction, currently on a monthly and daily basis.
- However, the month-end file will now only be maintained until 10 July 2022, and after this date, only the daily file format will be kept and provided by FR AMF to the public.