The FMA Regulation on Reporting Suspicious Short-selling Transactions (SSV; Short Selling Verdachtsmeldungsübermittlungsverordnung) will expire on 1 July 2013. The FMA regulation required Austrian credit institutions and investment firms to report to the FMA when their customers place orders to trade that are not adequately covered and they suspect market abuse. The expiry of the SSV is the final step in the transition to the new pan-European short selling regime as set forth in the EU Regulation on short selling and certain aspects of credit default swaps, in which the European Securities and Markets Authority (ESMA) is now playing the leading role as coordinator. The Second FMA Regulation Prohibiting Short Selling (LVV 2; Zweite Leerverkaufverbotsverordnung) was already replaced by the new EU short selling regime as of 1 November 2012. LVV 2 had prohibited, as a means of preventing market abuse through price manipulation, the uncovered short selling of certain Austrian securities.
“After the onset of the global financial crisis, we successfully introduced legal protection of the Austrian market from the negative impact of abusive short selling, in the form of FMA regulations. We now, therefore, explicitly welcome such protection being introduced uniformly in a coordinated manner for all of the EU,” FMA Executive Director Klaus Kumpfmüller stated.
Regulation (EU) No 236/2012 on short selling and certain aspects of credit default swaps now largely prohibits uncovered short selling at all trading venues in the EU. When sellers engage in short selling by creating a net short position as viewed in terms of the balance of purchases, sales as well as of shares and debt instruments held directly, they are required to notify the supervisory authorities, i.e. the FMA in Austria.
“We need not mention that we intend to implement the EU Regulation on short selling and certain aspects of credit default swaps with the same consistency devoted to our national regulations, in this way ensuring that the Austrian market continues to offer no opportunity for abusive short selling,” FMA Executive Director Kumpfmüller announced.
Journalists may address further enquiries to:
Klaus Grubelnik (FMA Media Spokesperson)
+43/(0)1/24959-5106
+43/(0)676/882 49 516