The European Securities and Markets Authority (ESMA) and the national competent authorities want a better data basis to be able to assess the scope of net short positions. Therefore, at the recommendation of ESMA, the European Commission has adopted a permanent reduction of the notification threshold.
The reduction entails that companies and persons with net short positions in a share must notify the relevant competent authority if the net short position in question is an existing net short position at or above 0.1% of the issued share capital. Moreover, notification must be made if the position reaches, exceeds or falls below 0.1% of the issued share capital. Changes in the net short position must also be reported if the position reaches, exceeds or falls below each 0.1% above the new threshold of 0.1%, i.e. notification must also be made if e.g. the position changes from 0.15% of the company’s issued capital to 0.22%.
The change applies to all net short positions including existing positions and new positions, at or above the threshold of 0.1% after the new threshold of 0.1% has become effective. Existing positions at or above the 0.1% threshold must be notified to the relevant competent authority not later than at 15.30 on 31 January 2022. Regarding all other necessary notifications, as has been the case so far, these must be made to the relevant competent authority not later than at 15.30 on the following trading day.
The permanent reduction follows after ESMA decided, in the period 16 March 2020 to 19 March 2021, to temporarily lower the notification threshold to 0.1% in light of the market unrest following the COVID-19 pandemic. Since 20 March 2021, the reporting limit has been 0.2%.
Notifications to the Danish FSA
Net short positions in securities admitted to trading in Denmark must be notified to the Danish FSA. The positions are submitted here.If you are a foreign company or a foreign person not previously having made any notifications, you will have to be registered as a user. This is done here.
If you have any questions to the notification of net short positions or questions relating to being registered as a foreign company or a foreign person, further information is available here.
Additional information from ESMA about the permanently lowered threshold is available here.