Friday January 4 2013

The German Regulation on Germany Net Short Positions has entered into force from 1 January 2013 following its publication in the Federal Gazette. The regulation contains technical details on notifications and public disclosures which have to be made under the EU Short Selling Regulation and thereby specifies requirements of the German Act for the Implementation of the EU regulation, which entered into force on 16 November 2012.

In particular, the Regulation on Net Short Positions:

• specifies details to be notified by persons who have net short positions in relation to the issued share capital of a company that has shares admitted to trading on a trading venue or issued sovereign debt or an uncovered position in a sovereign credit default swap;

• sets out the procedure of public disclosure to be made by a 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 where the net short position exceeds the thresholds under the EU regulation (0.5% of the issued share capital of the company concerned and each 0.1% above that); and

• provides for supervisory powers of the German Federal Financial Supervisory Authority (BaFin).

Click here for the legislation as published in the Federal Gazette. Click here for an unofficial translation.