The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, has today published a statement to clarify how to report net short positions (NSPs) between 28 and 31 January 2022 when the reporting threshold changes from 0.2% to 0.1%.
The last day of application of the old reporting threshold (0.2%) will be in relation to Friday, 28 January 2022, with NSPs to be reported to RCAs by 15.30 of the following trading day, i.e. Monday, 31 January 2022.
From Monday, 31 January 2022 onwards, position holders will have to report when their NSPs in shares exceed or are equal to 0.1% of the issued share capital and each 0.1% above that.
The statement requires position holders to report NSPs between 0.1% and 0.2% on the day of application of the 0.1% reporting threshold, even where they were entered into ahead of that date. This is to give Relevant Competent Authorities the full picture of NSPs above the new threshold, which otherwise would be incomplete.
Reporting entities are invited to read the statement which also provides for practical examples on when and how to report.