Final Report on the Review of the SSR

Final Report on the Review of the SSR

Yesterday, ESMA published the Final Report on the Review of the SSR. There are three focal areas on the Report:

1. Based on the emergency measures taken during the COVID-19 outbreak, an empirical analysis of their impacts is presented. ESMA proposes amendments to the rules for RCAs to issue long-term and short-term bans and for ESMA to adopt intervention powers;
2. The current framework for the calculation of NSPs, the list of exempted shares and the so called “locate rule” to be met when short selling are reviewed;
3. The framework for transparency and publication of Net Short Positions (NSPs) is being assessed in the context of the recent market events. The introduction of an ESMA-centralised system for publication and disclosure to the public of NSPs is proposed, as well as an EU-wide obligation for RCAs to periodically publish aggregated NSPs per issuer, integrating all individual positions reaching or exceeding the notification and the publication thresholds.

Should the EC decide to proceed with a review of the SSR, ESMA is ready to provide technical guidance.