MFA and AIMA Submit Joint Letter to ESMA in Response to Call for Evidence on Short Selling Regulation

March 15, 2013

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Topics: ESMA European Securities and Markets Authority, AIMA, Alternative Investment Management Association, European Parliament, Council of the European Union, short selling, credit default swap, CDS, short selling regulation, Europe, equity, assets under management, AUM, harmonization, competent authorities, reporting requirements, short positions, European Commission, operational challenges, short selling bans, market participants, securities, sovereign issuer, capital, liquidity, price discovery, market distortions, hedging, risk, sovereign debt, Latvia, bond, sovereign bonds, EU Member State, futures, futures market, public disclosure, stock, reverse engineer, efficiency, short squeeze, volatility, reporting obligation, T+1 reporting, hedge funds, price formation, corporate issuer, Lehman Brothers, duration, delta, derivatives, share capital, index derivatives, AIFMD, MiFID, EMIR, net short position, Belgium, Finland, Germany, Netherlands, BaFin, United Kingdom, Commissione Nazionale per le Societa e la Borsa, Committee of European Securities Regulators, CESR, issued share capital, T+2, Bundesanstalt fur Finanzdienstleistungsaufsicht, settlement, locate, prime broker, index, third party managers, technical standards, non-EU investment firms, extraterritoriality, reasonable expectation, uncovered sovereign CDS, eurozone, mark-to-market, single-name CDS, France, Spain, Italy, trading volume, Steven Maijoor, bid-ask spreads, price efficiency, derivative instrument, depositary receipts, London Stock Exchange, PRNewswire, Stock Exchange Daily Official List, compliance, market disruption, interpretive guidance,
From: MFA, Stuart Kaswell; AIMA, Jiří Krόl

To:

ESMA

MFA and AIMA jointly submitted a comment letter to ESMA responding to its Call for Evidence regarding its evaluation of the effect of the Short Selling Regulation. In the letter, MFA and AIMA recommend that ESMA: (i) work with competent authorities to establish a single reporting platform for all net short position disclosures for distribution to the relevant authority by establishing a single website for pan-European notifications, (ii) provide additional information and interpretive guidance clarifying the short sale reporting and transparency requirements, and (iii) develop standard guidance for any emergency measures imposed by national authorities under the Short Selling Regulation, announce bans via a single, European channel, and ensure that authorities provide at least 24 hours advance notice to market participants prior to the imposition of any emergency measures.

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