Regulation (EU) No 236/2012 of the European Parliament and of the Council of 14 March 2012 on short selling and certain aspects of credit default swaps was issued on 14 March 2012, and applies as of 1 November 2012. In accordance with the Regulation, as of 1 November 2012, significant short positions must be notified to the competent authority. The Financial Supervisory Authority must be notified of net short positions in shares listed on the Helsinki Stock Exchange and Finnish government bonds.
The obligation to notify net short positions applies to all investors and market participants. A net short position in relation to the issued share capital of a company that has shares admitted to trading on a trading venue must be disclosed where the position reaches, exceeds or falls below the threshold of 0.2% of the company’s issued share capital. A new notification must be submitted for each 0.1% above the threshold.
The Financial Supervisory Authority will publish any notified net short position that reaches, exceeds or falls below the threshold of 0.5% of the relevant company’s issued share capital on its website.
A net short position relating to issued sovereign debt must also be notified to the Financial Supervisory Authority, where such a position reaches, exceeds or falls below the notification threshold. Concerning debt issued by the Finnish government, the notification obligation arises where a position reaches, exceeds or falls below the threshold of 0.5% and each 0.25% above that. Short positions in sovereign debt will not be published.
Short positions must be notified to the Financial Supervisory Authority not later than at 15.30 on the following trading day after the transaction day. The Financial Supervisory Authority will publish notified short positions exceeding the threshold during the following trading day.
The Financial Supervisory authority will report notified short positions to ESMA on a quarterly basis.
Market makers and, regarding sovereign debt, primary dealers may seek an exception to certain provisions by notifying the competent authority at least 30 days in advance of their intention to apply the exception provided in the regulation. An exception permit notification is made using ESMA’s standard form.
Notifications and cancellations of erroneous notifications are made by sending the notification forms below to shortselling(at)finanssivalvonta.fi. Notification forms are machine-readable and should be sent to FIN-FSA in .xls format.
Notification form for net short positions
Cancellation form for erroneous notifications
Instructions for notification of net short positions
Examples of filled notification templates: Shares , Sovereign debt
Example of filled cancellation template
Protected email connection
Notifications should be made via protected email. Opening a protected email connection can be requested by email to shortselling(at)finanssivalvonta.fi. Log in to protected email at https://iea1.bof.fi/.
Instructions: Secure email connection between FIN-FSA and the reporter
FIN-FSA releases on short selling
25 October 2012 Regulation on notification of short position enters into force on 1 November 2012 (Supervision release 63/2012)
The other releases are available in Finnish and in Swedish.
Questions and answers on short selling at the ESMA website
ESMA’s short selling website
Questions and Answers (Questions and Answers on the Short Selling Regulation, providing practical instructions for example on issues related to the calculation of net positions)