• Home
  • News
    • People moves
    • Africa
    • Asia
    • Australia
    • Canada
    • Caribbean
    • Domicile
    • Europe
    • Latin America
    • North America
    • Middle East
    • US
    • US
    • UK
  • Products
    • Funds
    • Pensions
    • Platforms
    • Insurance
    • Investments
    • Private Banking
    • Citizenship
    • Taxation
  • Fintech
  • Regulation
  • ESG
  • Expats
  • In Depth
  • Special Reports
  • Directory
  • Video
  • Advertise with us
  • Directory
  • Events
  • European Fund Selector
  • Newsletters
  • Follow us
    • Twitter
    • LinkedIn
    • Newsletters
  • Advertise with us
  • Directory
  • Events
    • Upcoming events
      event logo
      International Investment Nordic Forum 2021

      International Investment is delighted to announce the 2021 International Investment Nordic Forum which will take place on Tuesday March 9, at 9am (GMT). This curated virtual event will be broadcast live and will feature a series of fund manager interviews and presentations, as well as interviews with some of the Nordic regions top fund selectors.

      • Date: 09 Mar 2021
      • ONLINE, ONLINE
      View all events
  • European Fund Selector
International Investment
International Investment

Sponsored by

Sharing Alpha
  • Home
  • News
  • Products
  • Fintech
  • Regulation
  • ESG
  • Expats
  • In Depth
  • Special Reports
  • Video
  • Capital Markets

Esma puts new leash on shorting in response to coronavirus

Esma puts new leash on shorting in response to coronavirus
  • Jonathan Boyd
  • Jonathan Boyd
  • @jonathanboyd
  • 17 March 2020
  • Tweet  
  • Facebook  
  • LinkedIn  
  • Send to  

The European Securities and Markets Authority (Esma) has issued a decision temporarily requiring the holders of net short positions in shares traded on a European Union regulated market to notify the relevant national competent authority (NCA) if the position reaches or exceeds 0.1% of the issued share capital.

The decision comes as stock markets globally have been further hit by fears of uncertainty sparked by the coronavirus and associated Covid-19 disease. Markets have continued to fall despite the announcement yesterday, 15 March, that the Federal Reserve and other central banks are coordinating action to ensure sufficient liquidity remains in the global financial system. Short sellers can make money while markets are falling.

Related articles

  • Esma puts new leash on shorting in response to Coronavirus
  • Law firm comments Esma shorting policy amid Coronavirus crisis
  • ESMA outlines rules for AMs to move from UK to EU post-Brexit
  • Esma outlines rules for AMs to move from UK to EU post-Brexit

Esma said that lowering the reporting threshold "is essential for authorities to monitor developments in markets."

"The measure can support more stringent action if required to ensure the orderly functioning of EU markets, financial stability and investor protection."

"Esma considers that the current circumstances constitute a serious threat to market confidence in the EU, and that the proposed measure is appropriate and proportionate to address the current threat level to EU financial markets."

Net short position holders must notify their NCAs of their relevant positions at the close of trading on Monday 16 March. The requirement applies regardless of country of residence, however, they "do not apply to shares admitted to trading on a regulated market where the principal venue for the trading of the shares is located in a third country, market making or stabilisation activities."

"Esma, in coordination with NCAs, continues to monitor developments in financial markets as a result of the Covid-19 situation and is prepared to use its powers to ensure the orderly functioning of EU markets, financial stability and investor protection."

 

This article was first published by InvestmentEurope

Subscribe to International Investment's free, twice-daily, newsletter

 

  • Tweet  
  • Facebook  
  • LinkedIn  
  • Send to  
  • Topics
  • Capital Markets
  • Regulation
  • National Competent Authority (NCA)
  • Coronavirus
  • Long/Short
  • EU
  • European Securities And Markets Authority (ESMA)

More on Capital Markets

FSCS warns industry of £1bn compensation bill

  • Regulation
  • 22 January 2021
Malaysia's Labuan IBFC partners with RAM Ratings agency

  • Regulation
  • 22 January 2021
Dubai regulator to develop cryptocurrency framework

  • Regulation
  • 21 January 2021
Ride the Biden Bounce, but judiciously, deVere chief warns investors

  • Capital Markets
  • 19 January 2021
Singapore sets out new banking rules to mitigate cyber risks

  • Regulation
  • 18 January 2021
Back to Top

Most read

SharingAlpha's 2020 top rated funds by category revealed
SharingAlpha's 2020 top rated funds by category revealed
Duff & Phelps opens Gibraltar office
Duff & Phelps opens Gibraltar office
Brexit deals hefty blow to City but industry is ready to fight back
Brexit deals hefty blow to City but industry is ready to fight back
Comment: Are cryptocurrencies the new gold?
Comment: Are cryptocurrencies the new gold?
Research suggests 'significant outperformance' by active managers in China
Research suggests 'significant outperformance' by active managers in China
  • Contact Us
  • Marketing solutions
  • About Incisive Media
  • Terms and conditions
  • Policies
  • Careers
  • Twitter
  • LinkedIn
  • Newsletters

© Incisive Business Media (IP) Limited, Published by Incisive Business Media Limited, New London House, 172 Drury Lane, London WC2B 5QR, registered in England and Wales with company registration numbers 09177174 & 09178013

Digital publisher of the year
Digital publisher of the year 2010, 2013, 2016 & 2017
Loading