ESMA updates short selling Q&As
31 May 2018 Paris
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The European 麻豆传媒 and Markets Authority (ESMA) has updated its Q&A documents on the short selling regulation (SSR)
ESMA said the overall SSR Q&A revises a pre-existing answer regarding locate arrangements, further specifying the requirements for 鈥榚asy-to-borrow and purchase鈥� lists.
The Q&A also aims to promote 鈥渃ommon supervisory approaches and practices in the application of SSR鈥�, as well as provide investors and other market participants with clarifications on the applicable requirements.
In its revised answer, ESMA said it deems that an 鈥渆asy-to-borrow or purchase list鈥� can be considered as an 鈥渆asy to borrow or purchase confirmation鈥� only where it is complemented for each share in the list with an assessment of: the maximum amount of shares affected by the possible short sale; the market conditions at the time of providing the list, including the liquidity of the shares concerned; and any other information available on the supply of the shares.
ESMA said the overall SSR Q&A revises a pre-existing answer regarding locate arrangements, further specifying the requirements for 鈥榚asy-to-borrow and purchase鈥� lists.
The Q&A also aims to promote 鈥渃ommon supervisory approaches and practices in the application of SSR鈥�, as well as provide investors and other market participants with clarifications on the applicable requirements.
In its revised answer, ESMA said it deems that an 鈥渆asy-to-borrow or purchase list鈥� can be considered as an 鈥渆asy to borrow or purchase confirmation鈥� only where it is complemented for each share in the list with an assessment of: the maximum amount of shares affected by the possible short sale; the market conditions at the time of providing the list, including the liquidity of the shares concerned; and any other information available on the supply of the shares.
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