ESMA · ESMA_QA_1929 Answer Published

Net short positions - Reporting by groups

Regulation
Short Selling Regulation (SSR) Regulation (EU) No 236/2012
Topic
Other SSR-related topics
Submitted
2013-01-29
Answered
2013-01-29
More Q&As on this regulation →

Question

In line with Article 13(2) of the DR, the group shall report, and disclose where relevant, the net short position in a particular issuer when it reaches or exceeds a relevant notification disclosure threshold. Provided that a group is not a legal entity, which legal entity within a group shall submit a notification?

Answer

[ESMA70-145-408 SSR Q&A, Q&A 8.6] A definition of a group is provided in Article 2(a) of the DR. However, the DR does not provide for the necessary information to determine which legal entity within a group is empowered to represent the said group when the latter has to notify a net short position to a competent authority. Article 13(3) of the DR only prescribes that a legal entity shall be designated for this purpose. Where a legal entity within a group is designated to report on behalf of the group, ESMA strongly encourages that the same legal entity is used for all such reports. Even if no further requirement on this matter can be imposed, ESMA nevertheless recommends that, where a group has to notify a net short position to a competent authority, a good practice would be to consider that the head company of the group is the relevant legal entity to represent the group. Indeed, the head company of a group generally is the legal entity that controls all undertakings within the group.
View original on European Securities and Markets Authority ↗

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.

Similar Q&As

Net short positions - Reporting by a legal entity within a group

Answered 2012-10-10

Net short positions - Reporting by a legal entity within a group when the group no longer cross a threshold

Answered 2013-01-29

Net short positions - Simultaneous crossing of threhsolds at group and legal entities levels

Answered 2012-10-10

Net short positions - Calculation and reporting for a group constituted only of legal entities performing exclusively management activities

Answered 2012-10-10

Net short positions - Meaning of position holder and reporting entities

Answered 2013-01-29

More Q&As on this topic

Uncovered Credit Default Swap - Replacement trades on sovereign CDS concluded before 25 March 2012

Answered 2013-01-29

Uncovered Credit Default Swap - Use of sovereign CDS index

Answered 2013-01-29

Uncovered Credit Default Swap - Static hedging through the holding of a sovereign bond

Answered 2013-01-29

Net short positions - Reporting by a legal entity within a group when the group no longer cross a threshold

Answered 2013-01-29

Net short positions - Meaning of position holder and reporting entities

Answered 2013-01-29

📋 Track EU financial regulation continuously

Forseti monitors EU financial regulation and delivers personalised alerts anchored to verified official sources.

Start free trial → Learn more

14-day free trial. No credit card required.