European Union:
The FCA Confirms New 0.1 Percent Net Short Reporting Will Be Required From 6 April 2020
23 April 2020
Akin Gump Strauss Hauer & Feld LLP
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The Financial Conduct Authority (FCA) has confirmed that it has
adjusted its systems to facilitate reporting in accordance with the
decision of the European Securities and Markets Authority (ESMA) of
16 March 2020 to temporarily lower the threshold for notifying net
short positions to European Union regulator under the Short Selling
Regulation (SSR) from 0.2 percent of issued share capital to 0.1
percent.
The FCA previously stated that, although ESMA’s decision
would apply in the UK, the FCA’s systems required certain
changes, and firms should continue to report at the previous
thresholds until further notice.
The FCA has confirmed that the required systems changes have
been made, and firms should report notifications at the lower
threshold from, Monday 6 April 2020. Firms are not required to
amend and resubmit notifications submitted to the FCA between 16
March 2020 and 3 April 2020.
In line with the SSR, the new reporting obligation as applied in
the UK will apply to shares for which the FCA is the relevant
competent authority under the SSR (as confirmed in ESMA’s FIRDS register), and the
reporting obligation does not apply to exempted shares where the
principal venue for the trading of the shares is located outside of
the EU.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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