ESMA · ESMA_QA_1891 Answer Published
Shares of companies in scope
- Regulation
- Short Selling Regulation (SSR) Regulation (EU) No 236/2012
- Topic
- Scope
- Submitted
- 2012-09-13
- Answered
- 2012-09-13
Question
Do shares of all companies traded on markets in the Union fall under the net short position notification and disclosure requirements under Articles 5 and 6, and the restriction on uncovered short sales of Article 12 of the regulation?
Answer
[ESMA70-145-408 SSR Q&A, Q&A 4.4] When determining whether the shares of an issuer fall under the regime, two cumulative conditions have to be taken into account: the shares are admitted to trading/traded on a trading venue (i.e. regulated market or MTF) in the Union; the principal trading venue for the share is in the Union (and not in a third country in case of multiple trading). For instance, shares of a company domiciled in the USA which are admitted to trading on a trading venue in Germany but whose principal trading venue is located in the USA are exempt from the notification/disclosure requirements (Articles 5 and 6 of the Regulation), the restrictions on uncovered short sales (Article 12) and from the buy-in procedures (Article 15 of the Regulation).
This Q&A is published by European Securities and Markets Authority and is non-binding. It does not constitute legal advice. Updated weekly from official ESA sources.
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