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 19 March 2021. 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 has still not been overcome. The developments on financial markets in relation to the positive news about vaccines have improved significantly recently, however the impact of the COVID-19 pandemic on the real economy in the EU however continues to remain sever, with the prospects for a future recovery remaining uncertain.
The extension of the stricter reporting requirements for net short positions continues to permit a narrow and timely observation of market developments, in order to be able as necessary to impose even stricter measures to protect the financial markets as well as investors.
The ESMA release can be found on the following link on the ESMA website.