On 25 February 2021, SWE FI reminded market of the rules for short selling.
- SWE FI reminded supervised subjects of short selling rules and duty to report position.
- Short sale means sale of a security that seller does not own at the time of the sale.
- Seller has instead borrowed or ensured that security can be borrowed at time of sale.
- Covering without coverage, so-called nude blanking, is not permitted.
- The ban on nudity applies to both natural and legal persons.
- When short sale is made, short position arises in relevant security; short net positions must be reported to SWE FI if they exceed 0.1% of issuer's issued share capital.
- Also for each step of 0.1% above, both up and down, in issuers with shares admitted to trading on a regulated market.
- For shares traded on multilateral trading platform (MTF) the threshold value is 0.2%.
- The obligation to report change in position applies to both natural and legal persons.
- SWE FI can intervene against violations of EU short-selling regulation 236/2012.