EUROPE: EU Net Short Position Reporting Threshold to Return to 0.2%; UK Retains 0.1% Threshold

Monday March 22 2021

On the 19^th March 2021, ESMA’s decision to require holders of net short positions to report at the initial threshold of 0.1% expired. The initial threshold for EU short selling notifications has reverted to 0.2%.

The decision requiring net short position holders to report positions of 0.1% and above was first introduced on 16 March 2020 and was renewed in June 2020, September 2020 and December 2020.

In contrast, net short positions in relation to UK-listed shares will continue to be subject to the initial threshold of 0.1%. On the 1st February 2021, the Short Selling (Notification Thresholds) Regulations 2021 took effect. The regulation amended the initial notification threshold under Article 5 of the SSR for the reporting of net short positions to the FCA, in relation to the issued share capital of a company that has shares admitted to trading on a trading venue, from 0.2% to 0.1%.

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