EUROPE: ESMA advance notice on EU short selling exemptions consultation

Friday August 31 2012

ESMA has published a notice to alert financial market participants to its upcoming consultation on the market making and authorised primary dealer exemption under the EU’s Short Selling Regulation and the procedure to be followed by firms and regulators in dealing with notifications of intention to use the exemption.

To ensure a level playing field between market participants, consistency of market practice and convergence of supervisory practices across the EEA Member States ESMA intends to publish a consultation paper on guidelines on market making activities and on the common approach to the application of the exemption in mid-September, being finalised after 1 November. Without prejudice of the outcome of the consultation, the intention is that this consultation paper is used as an interim benchmark by securities regulators for the application of the exemption and by market participants in their notification to competent authorities.

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