The Short Selling Regulation (SSR) introduced a private and public notification regime for investors who hold net short positions in certain financial instruments.
The SSR means you may have to notify us of positions that are private or are to be disclosed publicly.
Register to submit a notification
To be able to submit a short selling notification to us on behalf of a position holder (whether a firm or an individual), the person making the notification (the reporting person) must be registered with us.
If you are making notifications for yourself as an individual reporting person, you will still need to be registered as a reporting person beforehand.
You will not be able to send any notifications until we have accepted your registration.
Firstly, you will need to create a personal ESS account before you are able to submit a SSR registration form.
Once your account has been approved, you will need to submit one of the following Position Holder registration types:
- Registration for New Position Holder Firm – This registration type is to register yourself as a reporting person for a firm that has not been registered before.
- Registration for Existing Position Holder – This registration type is to register yourself as a reporting person for a firm/individual that is already registered
- Registration for New Position Holder Individual – This registration type is to register yourself as a position holder individual or for an individual that has not been registered before.
For all the above registration types an authorisation letter will be required to be uploaded on the ESS portal. The authorisation letter should be on company letter head and state which individuals have permission to submit notifications on behalf of the firm/individual. This should be signed by an individual that has the authority to give this level of permission.
For registering of New Position Holder Firm a certificate of incorporation of the firm will be required.
For registering a New Individual Position Holder, you must provide a copy of the position holder’s driving license or passport.
Once we have accepted your registration we will send you an acceptance email in addition to being given permission to the SSR notification submissions on ESS.
If there is more than one reporting person for a position holder, each reporting person must complete the registration process.
This is detailed in section 5 of our ESS user guide.
How to make a notification
You must notify the relevant competent authority for your notification – in the UK this is the FCA.
You should send your positions by 3.30pm on the trading day after the day the position was reached. All calculations should be made as at midnight on the trading day the position was reached.
Certain shares are exempt from the notification and disclosure requirements in the SSR as they are principally traded in third countries outside the EEA.
For a list of these shares please see the ESMA list of exempted shares.
Also see the ESMA short selling webpages for the latest information on prohibitions for specific financial instruments.
Private share notifications
A private share notification must be made when the net short position in shares reaches 0.2% of the issued share capital of the company concerned, and again at each 0.1% increment after that.
This relates to both increases and decreases of the position (including each time the position drops from 0.2% or above to below 0.2%).
Public share notifications
A public share notification must be made when the net short positions of shares reach 0.5% of the issued share capital of the company concerned, and again at each 0.1% increment after that.
This relates to both increases and decreases of the position (including each time the position drops from 0.5% or above to below 0.5%).
To make a public notification, fill in a Net Short Position share notification type on ESS and submit this to us. We will make this information available on our website if the position reaches or crosses the 0.5% threshold..
If you have previously disclosed a position publicly and that position then falls below 0.5%, you must make a new disclosure.
Sovereign debt and credit default swaps notifications
The obligation to privately report positions to the relevant competent authority extends to net short positions in sovereign debt and positions in uncovered sovereign credit default swaps (CDS).
ESMA has published a list of the different thresholds for each Member State in these instruments.
To notify us about sovereign debt or credit default swaps positions, complete the Net Short Position Sovereign Debt Notification on ESS and submit that to us.
Correct or delete an incorrect notification
When you submit a net short position notification, you will see a position ID in your ESS portal. There is a unique ID for every position submitted to us.
If you need to correct or delete a notification, you must submit a Net Short Position Share Notification – Correct and reference the position ID of the notification that you wish to correct.
If the position is completely incorrect and you wish to delete it you will need to submit a Net Short Position Share Notification – Delete and reference the position ID of the notification you wish to delete.
Do not use the notifications provided for correcting or deleting a notification to report a movement of a position, or the closing out of a position. These notification types should only be used when you have given us incorrect information in a notification.
Notes for using the forms
You must provide all the mandatory information (highlighted in a red asterix) to complete the form.
The ISIN code of the stock must be provided in the correct format (12 alphanumeric characters) and a percentage position must always be completed to two decimal places.
For thresholds regarding sovereign debt and uncovered positions in sovereign CDS, please see the ESMA short selling webpages on net short position notification thresholds for sovereign issuers.
Exemptions from the SSR
Market makers and authorised primary dealers may not have to comply with these obligations when undertaking market-making activities in the instruments and using an exemption from the SSR. You may find more information on the market making exemption here.
Request for guidance
You can request guidance in writing and on a named basis only.
We expect the submitter to have considered the query before writing to us, and we may reject any queries that we do not consider are seeking guidance.
Email queries to [email protected], with the subject line ‘Request for guidance: SSR’.