Short sale: Reporting threshold for net short positions reset at 0.2%
Published: 18 March 2021
EEA-wide decision to temporarily lowering the threshold for reporting net short positions to Finanstilsynet (The Financial Supervisory Authority of Norway) to 0.1 % is due to expire on 19 March 2021. After this date, the 0.2% reporting threshold of the Short Selling Regulation will apply.
Due to the outbreak of the COVID-19 pandemic and the market situation, the EFTA Surveillance Authority (ESA) decided, in accordance with the decision by the European Securities and Markets Authority (ESMA) of the same day, on March 16th 2020, to temporarily lower the threshold for notifying the relevant competent authorities of net short positions from 0.2% to 0.1%. The decision was prolonged several times, the latest decision applicable since 19 December 2020. As ESA has not further prolonged the decision, the current decision will expire on 19 March 2021.
Net short positions calculated after 19 March 2021 are required to be reported to Finanstilsynet should the positions reach or fall below a percentage that equals 0.2% of the issued share capital of the company concerned and each 0.1% above that threshold, cf. article 5 of the Short Sale Regulation. The same notification requirement applies for equity certificates, cf. the Norwegian Securities Trading Act section 3-6.
Investor's net short positions which reach or falls below 0.1% of the issued share capital of the company calculated at midnight on 19 March 2021 shall be reported to Finanstilsynet no later than 15:30 on Monday 22 March 2021.
For further information and details please review the following information from ESA and ESMA:
The decisions to temporarily lowering the threshold are available here:
- Short sale: Decision by ESA and ESMA on 16 March 2020
- Short sale: Decision by ESA and ESMA on 10 June 10 2020
- Short sale: Decision by ESA and ESMA on 17 September 2020
- Short sale: Decision by ESA and ESMA on 17 December 2020