On June 3, The European Securities and Markets Authority (ESMA) published its technical advice to the European Commission on the impact of the Short Selling Regulation (ESMA/2013/649). The advice includes:

• Current reporting and disclosure thresholds are correct, but technical improvements are suggested for the method for calculating net short positions in shares and for information provided to competent authorities and the public through the notifications of actively managed funds and on positions held through convertible bonds or subscription rights.
• Further clarifications for the exemption for market making activities. Areas for change include the scope of the exemptions and the conditions for being able to use them, particularly the trading venue membership requirement.
• The provisions for temporary bans when there are significant price falls should be reconsidered with a view to simplification and ensuring more consistency.

The advice will contribute to the Commission’s report on the review of the Regulation, which it is required to present to the European Parliament and the Council of the European Union by June 30.  Technical Advice.