Fund managers and investors should be aware that new Norwegian short selling rules are expected to come into force on 1 Jan. 2017 (the ‘New Rules’). The New Rules are Norway’s implementation of European Union (‘EU’) Regulation No 236/2012 on short selling and certain aspects of credit default swaps (the ‘Short Selling Regulation’).[1] This Alert
Short Selling
Trading and Compliance Issues Under Rule 105
By Brian T. Daly on
Posted in SEC Regulation, Short Selling
One continual source of concern for registered investment advisers and other managers who actively trade in the public equity markets is compliance with Rule 105. Rule 105 is part of Regulation M, which is a longstanding set of U.S. Securities and Exchange Commission rules governing the activities of — among others — underwriters, issuers and…
New ESMA Guidance on European Short Selling Rules — Effective 1 November 2012
By Christopher Hilditch & Daniel F. Hunter on
On 10 October 2012 the European Securities and Markets Authority (“ESMA”) published guidance in the form of Questions and Answers (the “Q&A”) on the implementation of the new EU Short Selling Regulation (the “Regulation”). The Regulation places new restrictions on short sales of securities traded in EU markets and EU sovereign debt, including credit default…
New European Rules on Short Selling – Effective 1 November 2012
By Christopher Hilditch & Daniel F. Hunter on
Posted in EU, Short Selling
The EU Regulation 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 (the “Regulation”) and the subsidiary legislation made under it take effect in all 27 countries of the EU on 1 November 2012 and will replace all existing rules…
CDS Issues in the EU Short Selling Regulation — Update on Disclosures for EU Sovereign Debt
By Schulte Roth & Zabel on
As was anticipated in our previous blog posting on 2 April 2012, clarification on certain aspects of the EU’s new short selling regulation relating to CDS on EU sovereign debt was published by ESMA on 20 April 2012. This final technical advice from ESMA to the European Commission on the new EU short selling rules…
CDS Issues in the EU Short Selling Regulation — When Is a CDS Position Naked or Not?
By Schulte Roth & Zabel on
Credit default swaps on EU sovereign debt are also covered by the EU’s new short selling regulation, which will come into force across the EU on Nov. 1, 2012. The Regulation prohibits uncovered or “naked” shorting of EU listed securities and CDS on EU sovereign debt. However, ESMA recognizes that a wide range of risks…