EUROPE: ESMA publishes report on budgetary implications of EU Short Selling Regulation

Thursday January 3 2013

The European Securities and Markets Authority has published its Report to the European Parliament, the Council and the Commission on the budgetary implications of Regulation (EU) No 236/2012 on EU short selling and certain aspects of credit default swaps.

Article 47 of the Short Selling Regulation requires ESMA to assess the staffing and resource needs arising from the assumption of its powers and duties under the SSR and submit a report to the European Parliament, the Council and the Commission of these needs by 31 December 2012.

In the report, ESMA has highlighted the tasks that it will need to carry out in view of its responsibilities under the SSR. For each task the report analyses the implications in terms of processes and activities to be carried out. It estimates the different processes that are expected to be followed and completed and it determines the resource implications that these will have.

Among others, ESMA has identified that it will be publishing an updated Q and A on the short selling measures in the immediate future, and will continue to maintain the document on at least an annual basis. The technical advice from ESMA to the Commission on the review of the Short Selling Regulation is anticipated to be submitted to the Commission by the 31st May 2013 deadline. ESMA has also stated it anticipates the Commission to request technical advice on the legal and supervisory equivalence assessments of third countries for the purpose of the exemption for market making activities by third country entities who are members of a market in that country.

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