and costly for reporting entities
and whether public disclosure of
net short positions in shares are
effective. It also posed the question
of whether the thresholds for disclosure—both public and private—
should be changed.
News to follow
The noises seem encouraging. Yet
whether ESMA will deliver what
the industry wants is another
matter. Certainly Robinson does
not believe that there will be any
change in the disclosure thresholds.
“We don’t support the 0.5%
public disclosure threshold, though
recognise that politically it will
probably be hard to change,” says
Robinson. “Our primary target is
to make the regime more efficient,
As for the loophole—ESMA says
it has no intention of looking at
short selling using special purpose
The regulator has had its hand
strengthened by the continued
critical voices around the world.
Despite the already stringent rules,
participants around the globe have
been asking for further tightening.
In June, Tom Farley, head of the
New York Stock Exchange, said
that short sellers should be forced
to reveal more of their activities
and called the practise of short
selling “icky and un-American.”
there will continue to be strictures
post-review which are unlikely to
lead to the kind of progress that
short sellers are hoping for.
“If you have to disclose a short position you
might find it harder to get boardroom access,”
CYRUS POCHA, SENIOR ASSOCIATE, FRESHFIELDS