ESMA has issued a public consultation regarding its future technical advice to the European Commission (EC) on the Short Selling Regulation (SSR). ESMA publishes this consultation paper to seek the views of market participants on the three main elements of its advice to the EC:
- the scope and functioning of the exemption for market making activities;
- the procedure for imposing a short term ban on short-selling in case of a significant fall in price of a financial instrument; and
- the transparency of net short positions, and the related reporting and disclosure requirements.
ESMA will evaluate to what extent the SSR has achieved its original objectives in terms of relevance, effectiveness, coherence, and efficiency. To improve the Regulation, the technical advice will propose potential changes to the legal framework. In order to prepare its technical advice, ESMA is inviting investors, market participants, and any other interested stakeholders to provide responses to the questions outlined in the consultation paper and any other issues they may want to raise. The closing date for responses is 4 September 2017.