The European Securities and Markets Authority (ESMA) has extended the temporary reporting obligation for net short positions of 0.1% or more that was issued on 16 March 2020 until 18 December 2020. This reporting requirement affects shares traded on a European Union regulated market with the generally existing reporting threshold remaining at the reduced level of 0.1% of the issued share capital rather than 0.2%. The reporting threshold does not apply for shares, whose principle venue for trading is located in a third country outside the European Union, as well as for market making or stabilisation activities. This transparency measure applies to every natural or legal person, irrespective of whether their country of residence being inside or outside of the European Union. Positions are required to be reported to the competent national supervisory authority – the FMA in the case of the Vienna Stock Exchange (Wiener Börse).
Protecting Investors and Financial Market Stability
“The COVID-19 crisis is not yet over. While the financial markets have stabilised again, and the losses sustained have in part been recouped again, there has been a massive impact on the real economy. The threat of a second wave of infection remains high, and it is difficult to gauge when a sustainable upturn will kick in,” remarked the FMA’s Executive Directors, Helmut Ettl and Eduard Müller: “The extension of the stricter reporting requirements for net short positions allows us to observe market developments closely and in a timely manner, in order in the event of market shocks where there is an irrational or excessive reaction to be able to take even stricter measures to protect the financial markets and investors.”
The ESMA release can be found on the following link on the ESMA website.
Journalists may address further enquiries to:
Klaus Grubelnik (FMA Media Spokesperson)
+43/(0)1/24959-6006, or +43/(0)676/882 49 516