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.
See the public short positions disclosed to us - daily update (XLS).
Information on preparation for Brexit
In Primary Market Bulletin (21), published in February 2019, we advise market makers and issuers of new regulatory obligations that they will need to implement for the SSR and Market Abuse Regulation (MAR), if the UK leaves the EU without an implementation period (a no-deal scenario).
This is particularly important for firms using the market maker exemption under the SSR, as they may need to take action before Exit day.
In addition, we explained that under the UK SSR we will take responsibility for publishing the list of exempted shares traded in the UK, where the principal trading venue is in a third country.
In Primary Market Bulletin (24), we have provided an update on our work on the UK Short Selling Regulation. The UK list of exempted shares will be published on exit day on our UK SSR webpage.
Register to submit a notification
To be able to submit a short selling notification to us on behalf of a position holder, the person making the notification (the reporting person) must be registered as authorised.
If you are making notifications for yourself, you will still need to be registered as a reporting person beforehand.
We will not process any notifications until we have accepted your registration.
To register, you must email all relevant items in the following list to [email protected]:
- A completed SSR registration form (XLS), with the details of both the position holder and the reporting person. If notifications have been made on behalf of the position holder before, then you only need to provide their position holder ID.
- If the position holder does not have an ID, you must send either the position holder’s certificate of incorporation (if it is a company) or the position holder’s driving licence or passport details (if it is an individual person).
- If the reporting person is different to the position holder or the position holder is a company rather than an individual, you must send a signed letter on the position holder’s headed paper (including the address) that identifies the reporting person who will be notifying positions on their behalf.
Once we have accepted your registration we will send you an acceptance email.
If you are the reporting person for a new position holder you will also receive the position holder’s ID, which you must include on each subsequent position notification.
If there is more than one reporting person for a position holder, each reporting person must complete the registration process.
How to make a notification
You must notify the relevant competent authority for your notification – in the UK this is the FCA.
The forms you send us need to be in XLS format. If you want to send your data encrypted, please use our PGP Key.
You should notify us of 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 notification, fill in a share notification form (XLS) and email it to [email protected]. We will make this information available on our website. You will not need a submission reference number.
If you have previously disclosed a position publicly and that position then falls below 0.5%, you must make the new position public. To comply with this obligation, email the completed share notification form to [email protected] only.
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 sovereign debt or credit default swap notification form (XLS) and email it to [email protected].
Correct or delete an incorrect notification
When you submit a notification you will receive an email with your submission reference number.
If you then realise that you need to correct or delete the notification, you must email the relevant SSR disclosure mailbox a new notification form (see above) that includes the original submission reference number.
For a correction select the ‘Correct a Notification’ option in Notification Type; for a deletion select the ‘Delete a Notification’ option.
Do not use the forms 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
To make a notification you will need to provide a position holder ID (see above) and either the full company name or the first names and surnames of individuals who hold the position being notified.
You must provide all the mandatory information (highlighted in red) 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.
The ‘Notification Type’ drop-down menu will allow you to choose from the following:
- Submit a notification: to make a notification that a position has crossed a threshold – a submission reference number is not required (greyed out on form).
- Correct a notification: correct information on a previous notification – you will need to complete the relevant submission reference number and provide the information (position date, shares and share capital) that was made in that incorrect notification.
- Delete a notification: to delete a previously made notification because it should not have been made. You will need to complete the relevant submission reference number and provide the information (position date, shares and share capital) that was made in that incorrect notification.
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.
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’.