ESMA_QA_1942

Status: ✅ Answer Published

Link to ESMA Q&A tool: https://www.esma.europa.eu/publications-data/questions-answers/1942

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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: Uncovered short sales

Subject Matter: Shares - Restriction on uncovered short sales in shares and instruments giving claims to as yet unissued shares (subscription rights, convertible bonds)

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Question

Submission Date: 13 September 2012

To what extent are instruments which give claims to as yet unissued shares (subscription rights, convertible bonds) affected by the restriction?

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ESMA Answer

Answer Date: 13-09-2012

[ESMA70-145-408 SSR Q&A, Q&A 10.5] According to Article 12(1) of the Regulation, the provisions of the restriction on uncovered short sales of shares relate only to shares admitted to trading on a trading venue. That means that transactions in instruments such as subscription rights and convertible bonds e.g. performed as part of a capital increase do not fall within the scope of Article 12(1) of the Regulation.

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This document was automatically extracted from the ESMA EMIR Q&A database.