Notification of short positions 

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 0.10% and each 0.05% 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 Short positions in sovereign debt will not be published.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.

Notification forms

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)

Regulation in the EUR-Lex service

 Regulation of the European Parliament and of the council on short selling and certain aspects of credit default swaps 
 Commission delegated regulation supplementing Regulation (EU) No 236/2012  of the European Parliament and of the Council with regard to regulatory technical standards on notification and disclosure requirements with regard to net short positions, the details of the information to be provided to the European Securities and Markets Authority in relation to net short positions and the method for calculating turnover to determine exempted shares
 Commission Implementing Regulation No…/..of XXX laying down implementing technical standards  with regard to the means for public disclosure of net position in shares, the format of the information to be provided to the European Securities and Markets Authority in relation to net short positions, the types of agreements, arrangements and measures to adequately ensure that shares or sovereign debt instruments are available for settlement and the dates and period for the determination of the principal venue for a share according to Regulation (EU) No 236/2012 of the European Parliament and of the Council on short selling and certain aspects of credit default swaps
 Commission delegated Regulation (EU) No …/.. supplementing Regulation (EU) No 236/2012  of the European Parliament and of the Council on short selling and certain aspects of credit default swaps with regard to regulatory technical standards for the method of calculation of the fall in value for liquid shares and other financial instruments

10 February 2014