ESMA · ESMA_QA_1904 Answer Published

Rounding net short positions expressed in percentages

Regulation
Short Selling Regulation (SSR) Regulation (EU) No 236/2012
Topic
Transparency of net short positions
Submitted
2012-10-10
Answered
2012-10-10
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Question

For the purpose of the reporting and disclosure of net short position in shares, what should be the approach to rounding a net short position expressed in percentage?

Answer

[ESMA70-145-408 SSR Q&A, Q&A 5.6] The net short position resulting from the calculation to be performed by an investor and expressed in percentage of the issued share capital of a particular issuer should be reported when a relevant notification threshold (e.g. for net short positions in shares: 0.2 %, 0.3 %, 0.4 %, 0.5 %, 0.6 %, etc.) is reached, exceeded or crossed downwards. In such case, the position to report should be rounded to the first two decimal places by truncating the other decimal places. For instance, if the net short position is 0.3199 %, a notification is required and should indicate the 0.31% position. However, for a net short position of 0.1987% of the issued share capital, no notification is required.
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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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