{"id":"circulars/cssf-22-798","title":"Circular CSSF 22/798","type":"circular","date":"2022-02-01","kind":"circular","html":"<p>Circular CSSF 22/798 is a CSSF circular, published 1 February 2022 and updated 4 February 2022. Subject: Amendment to Circular CSSF 12/548.</p>\n<p>Relevant for: Investment firms, Part II UCIs, SICARs, SIFs, UCITS.</p>\n<p>Main topic: Short selling.</p>\n<h2>Text</h2>\n<p>Circular CSSF 22/798 Re: Amendment to Circular CSSF 12/548</p>\n<p>Luxembourg, 1 February 2022</p>\n<p>Ladies and Gentlemen, The present circular amends Circular CSSF 12/548 of 30 October 2012 on the</p>\n<p>To all entities subject to Regulation (EU) No 236/2012 on short selling and certain aspects of credit default swaps</p>\n<p>entry into force of Regulation (EU) No 236/2012 of the European Parliament and of the Council of 14 March 2012 on short selling and certain aspects of credit default swaps and details on certain practical aspects of notification, disclosure and exemption procedures, as amended (“Circular CSSF 12/548”), in order to reflect changes made by Commission Delegated Regulation (EU) 2022/27 of 27 September 2021 amending Regulation (EU) No 236/2012 of the European Parliament and of the Council as regards the adjustment of the relevant threshold for the notification of significant net short positions in shares. Circular CSSF 12/548 is amended as follows: In Section 1, point a., the first paragraph is amended as follows: “In accordance with Article 5(1) of the Regulation, a natural or legal person who has a net short position in relation to the issued share capital of a company that has shares admitted to trading on a trading venue shall notify the relevant competent authority, in accordance with Article 9, where the position reaches or falls below the relevant notification threshold which is 0.2% 0.1% of the issued share capital of the company concerned, and each 0.1% above that.” The present circular shall apply with immediate effect.</p>\n<p>Françoise KAUTHEN</p>\n<p>Claude MARX</p>\n<p>Attachment:</p>\n<p>Commission Delegated Regulation (EU) 2022/27 of 27 September 2021 amending Regulation (EU) No 236/2012 of the European Parliament and of the Council as regards the adjustment of the relevant threshold for the notification of significant net short positions in shares</p>\n<p>11.1.2022</p>\n<p>Official Journal of the European Union</p>\n<p>COMMISSION DELEGATED REGULATION (EU) 2022/27 of 27 September 2021 amending Regulation (EU) No 236/2012 of the European Parliament and of the Council as regards the adjustment of the relevant threshold for the notification of significant net short positions in shares (Text with EEA relevance)</p>\n<p>THE EUROPEAN COMMISSION,</p>\n<p>Having regard to the Treaty on the Functioning of the European Union,</p>\n<p>Having regard to Regulation (EU) No 236/2012 of the European Parliament and of the Council of 14 March 2012 on short selling and certain aspects of credit default swaps (1), and in particular Article 5(4) thereof,</p>\n<p>Whereas:</p>\n<p>(1)</p>\n<p>Regulation (EU) No 236/2012 establishes the obligation to notify to competent authorities of significant net short positions in relation to the issued share capital of a company that has shares admitted to trading on a Union trading venue, where the position reaches or fall below the relevant notification threshold. It is necessary for the Commission to monitor whether such relevant notification threshold remains appropriate in light of developments in financial markets and to assess whether it is necessary to modify that threshold in accordance with Article 5(4) of that Regulation.</p>\n<p>(2)</p>\n<p>In early 2020, a substantial selling pressure and unusual volatility stemming from the global outbreak of COVID-19 led to significant downward price spirals affecting issuers from all sectors across financial markets. The European Securities and Markets Authority (ESMA) made use of its intervention powers in exceptional circumstances to temporarily lower the relevant notification threshold for significant net short positions in shares, in order to improve both ESMA’s and regulators’ monitoring activity of such positions, determine whether more stringent actions could be appropriate and be able to react quickly.</p>\n<p>The text above is the opening of the document; the PDF carries the whole.</p>\n<p><a href=\"https://www.cssf.lu/en/Document/circular-cssf-22-798/\" target=\"_blank\" rel=\"noreferrer\">Document page</a>, <a href=\"https://www.cssf.lu/wp-content/uploads/cssf22_798eng.pdf\" target=\"_blank\" rel=\"noreferrer\">PDF</a>. Source: Commission de Surveillance du Secteur Financier (CSSF), reproduced with the CSSF's consent. The French text prevails.</p>"}