Guidelines on exemption for market making activities and primary market functions under the Short Selling Regulation

On 2 April 2013, the European Securities and Markets Authority, ESMA published guidelines on the exemption for market makers and primary dealers under the Short Selling Regulation.

According to the Regulation, market makers and primary dealers are exempt from some of the restrictions and disclosure rules in the Regulation. The ESMA guidelines are intended to standardise the interpretation of EU legal instruments across Member States.

  • The guidelines are found here

The guidelines can be used as a guide to understanding the exemptions and as a description of the procedures that the Danish FSA (DFSA) will apply when assessing a notification from an investment firm to the effect that it intends to make use of the market maker exemption.

The guidelines also contain various standard forms which market makers or primary dealers must use when contacting the DFSA in respect of the exemption.

Standard forms can be found via the links below:

In general, the DFSA intends to apply its procedures in accordance with the guidelines published. However, the DFSA has notified ESMA that the DFSA does not intend to follow the guidelines in relation to paragraphs 35-36 regarding market membership and paragraphs 75-76 regarding the review of existing exemptions.