EU Short Selling Regulation - an overview

The EU Short Selling Regulation was published in the Official Journal on 24 March 2012 and came into force the day after. It introduces a pan European disclosure regime for net short positions in EEA listed shares and sovereign debt, as well as a ban on naked physical short sales of EEA listed shares and sovereign debt, and a ban on credit default swap positions in EEA sovereign debt which, broadly speaking, do not serve to hedge exposure to the underlying debt (so called naked CDS positions). Although the Regulation came into force on 25 March 2012, its provisions will not apply until 01 November 2012.