ESMA_QA_1896
Status: ✅ Answer Published
Link to ESMA Q&A tool: https://www.esma.europa.eu/publications-data/questions-answers/1896
Regulatory Context
Regulation : SSR
Level 1 Regulation: Short Selling Regulation (SSR) Regulation (EU) No 236/2012
Level 2 Regulation: No information available
Level 3 Regulation: No information available
Topic: Scope
Subject Matter: Meaning of debt instruments issued by a sovereign issuer
Question
Submission Date: 29 January 2013
What is meant by debt instruments issued by a sovereign issuer (Article 2(1)(f) of the Regulation)? In particular, are bank loans or bonds issued by a company wholly owned by a Member State included?
ESMA Answer
Answer Date: 29-01-2013
[ESMA70-145-408 SSR Q&A, Q&A 4.9] Debt instruments issued means transferable securities as defined under Directive 2004/39/CE (MiFID) i.e. money market instruments and bonds issued by the Member State, including those issued by a government department, an agency or a SPV of the Member State as well as the other cases provided for by Article 2(1)(d) of the Regulation. Therefore, bank loans borrowed by a Member State and bonds issued by companies owned by a Member State (except SPV) are excluded from the definition. Moreover, according to Recital 9 of the Regulation, debt instruments issued by regional or local bodies or quasi-public bodies in a Member State are excluded as well. This definition would apply to the calculation of the outstanding issued sovereign debt as well as to the calculation of net short positions and, needless to say, to the restrictions on uncovered short sales in sovereign debt.
This document was automatically extracted from the ESMA EMIR Q&A database.