DENMARK: FSA reprimand for breach of Denmark short selling disclosure requirement

Tuesday January 14 2014

The Danish regulator has highlighted a recent breach of the EU Short Selling Regulation.

The Danish FSA has publicly reprimanded Pictet Asset Management Limited for late notification of a net short position in accordance with Article 9 of the EU Short Selling Regulation.

Under the Regulation, a natural or legal person who has a net short position must determine its position at midnight on the trading day on which the position is achieved.

If the net short position exceeds 0.2% of the listed company`s share capital, the natural or legal person must submit information on the position to the relevant competent authority no later than the following trading day at 15.30. For shares admitted to trading on Danish trading venues the FSA is the relevant competent authority.

On 21 November 2013 Pictet Asset Management Limited reported to the FSA a position in a company admitted to trading on a regulated market in Denmark. The notice showed that the date on which the short position was reached was on Monday 15 July 2013. The notification of the net short position entered into by Pictet Asset Management Limited should have been made on Tuesday 16 July 2013 by 15.30.

Pictet Asset Management Limited. has stated that the reason for the late submission was an IT-related systems failure.

Click on the above link for the press release (in Danish).