Thursday June 20 2013
News Source: Global Disclosures
Focus: Short Selling
Type: General
Country: France
The AMF has published its position document on the market maker and primary dealer exemption under the EU Short Selling Regulation.
The AMF document states that the provisions of Article 17 of the Rules shall be construed in light of the provisions in this position, which itself includes the guidelines of ESMA 2013/74. Note that ESMA has indicated that France is one of five member states which have stated they will not apply in full the ESMA guidelines – the AMF has stated it intends to comply with the full provisions of the guidelines though the said guidelines shall only enter into force as soon as they are fully applied by all National Competent Authorities throughout the EU.
The AMF document covers the following themes:
I. Background and Introduction
II. Definition and scope of the exemption for market making activities (including details of the instrument-by-instrument basis and the membership requirement)
III. Designation of competent authority to which the notification is addressed
IV. General principles and criteria of eligibility for the exemption (including principles and criteria applicable to “communicating simultaneously buying and selling prices of a comparable size at competitive prices, with the result of providing liquidity to the market on a regular and ongoing basis” and principles and criteria applicable to transactions “in the ordinary course of business, by fulfilling orders initiated by clients or in response to requests to buy or sell”, and anticipatory hedging under Article 2, paragraph 1 k) iii)
V. Exemption procedure, including cooperation with other member states
VI. Transitional measures
The forms to be used for notification of intention to use an exemption are aannexed to the Position.
The date of entry into force of the position is deferred to the date of application by all guidance issued by ESMA.
Click on the above link for the AMF Position (in French).