EUROPE: ESMA publishes final guidelines on market making exemptions under EU Short Selling Regulation

Tuesday April 2 2013

The European Securities and Markets Authority has published the final guidelines on the exemption for market making activities and primary market operations under Regulation (EU) 236/2012 of the European Parliament and the Council on EU short selling and certain aspects of Credit Default Swaps.

The guidelines provide information on the following:

• Definition and scope of the exemption for market making activities
• The exemption applying on a per-instrument basis
• The membership requirement
• Determination of the competent authority that should be notified
• General principles and qualifying criteria of eligibility for the exemption
• The exemption process

Standard form templates for use for the exemption are appended to the Guidelines.

The publication of the translated guidelines triggers a transitional period of two months during which national supervisors have to declare whether they intend to comply with the guidelines, or otherwise explain the reasons for non-compliance.

ESMA expects the Guidelines to become effective and to be applied across the EU from 2 June 2013.

Click on the above link for more details.