NEWS

The Committee of European Securities Regulators (CESR) published on June 2 technical details for a pan-European short selling disclosure regime, which it proposed in March. CESR provides technical details in five areas: method of calculating economic exposure; calculation of changes in a net short position; clarification of the aggregation requirement; mechanics of disclosure; and exemptions.

Under CESR’s proposal, an end-of-day net short position of 0.2% (and every 0.1% thereafter) of an issuer’s share capital should be disclosed privately to the relevant national regulator before the end of the trading day on which the position was reached. Positions would be disclosed both to the regulator and to the market at 0.5% (and every 0.1% thereafter). The regime would apply only to issuers whose shares were admitted to trading on an EEA regulated market and/or an EEA multilateral trading facility (MTF), unless the primary market for the shares is located outside the EEA.