On 26 January 2022, the European Securities and Markets Authority (ESMA) published a statement clarifying how to report net short positions (NSPs) between 28 to 31 January 2022 when the reporting threshold changes from 0.2% to 0.1%.
The European Commission adopted the decision to permanently lower the threshold from 0.2% to 0.1% on 27 September 2021 and it was published in the Official Journal on 11 January 2022. Therefore, Commission Delegated Regulation (EU) 2022/27 of 27 September 2021 amending the Short Selling Regulation as regards the adjustment of the relevant threshold for the notification of significant NSPs in shares will start applying on 31 January 2022.
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 Member State competent authorities the full picture of NSPs above the new threshold, which otherwise would be incomplete.
From 31 January 2022 onwards, position holders must report when their NSPs in shares exceed or are equal to 0.1%. Position holders will also be required 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.