Stand:updated on 27.10.2015 Exemptions for market makers and primary dealers
Article 17 of the EU Short Selling Regulation (Regulation (EU) No 236/2012 on short selling and certain aspects of credit default swaps) stipulates an exemption for market makers and primary dealers from the restrictions applying to naked short selling and the transparency requirements regarding net short positions. Anyone intending to make use of this exemption must submit a written notification to the competent authority not less than 30 calendar days before they first intend to use the exemption.
Updated BaFin rules concerning the form of notification of intent
BaFin has published an updated version of its Guidance Notice on the form of notification of intent for market makers and primary dealers pursuant to Article 17 of the EU Short Selling Regulation. The updated version of the Guidance Notice taking account of the Guidelines on exemptions for market making activities and primary market operations of the European Securities and Markets Authority (ESMA Guidelines) published on 2 April 2013 and BaFin’s “Partial Compliance Declaration” contains information on who falls under the scope of the exemption and how utilisation of the exemption is to be notified.
The updated version of the Guidance Notice supersedes BaFin’s Guidance Notice of 31 August 2012. There is no grandfathering provision for activities that have already been notified to BaFin in accordance with national law and/or the rules set out in the Guidance Notice of 31 August 2012.
Details of the manner, scope and form of the notification of intent are also provided in the German Short Selling Notification Regulation (Leerverkaufs-Anzeigeverordnung – LAnzV; only available in German).
