EUROPE: Commission publishes regulation on EU short selling group calculations

Tuesday October 21 2014

The EU Commission has adopted a Delegated Regulation under the EU Short Selling Regulation which amends Delegated Regulation No 918/2012.

Article 13(3) of Regulation No. 918/2012 has been corrected by means of a correcting act so as to ensure legal certainty to the market on the method of calculating positions for legal entities within a group that have long or short positions in relation to a particular issuer.

While Article 13 of Commission Delegated Regulation (EU) No 918/2012 provides the method of calculating positions both for issued share capital and issued sovereign debt, Article 13(3) refers explicitly only to the case of reaching or crossing the notification threshold of Article 5 of Regulation (EU) No 236/2012 (i.e. the threshold for the notification to competent authorities of significant net short positions in shares) while it should also explicitly refer to the notification threshold of Article 7 of Regulation (EU) No 236/2012 (i.e. the threshold for the notification to competent authorities of significant net short positions in sovereign debt).

Article 13(3) of Commission Delegated Regulation (EU) No 918/2012 has been amended by replacing “Article 5” with “Articles 5 and 7” in order to avoid any negative consequences arising from legal uncertainty.

The Delegated Regulation will enter into force on the twentieth day following that of its publication in the Official Journal.

Click on the above link for the Regulation.