Stand:updated on 11.02.2025 | Topic Short selling Notification and publication requirements for net short positions
The EU Shorting Selling Regulation sets out transparency requirements for shares, sovereign debt, and, subject to certain conditions, sovereign credit default swaps (CDSs). The purpose of notifications of net short positions is to provide the competent authorities as well as ESMA (to which certain notifications and positions are forwarded by the national authorities on a quarterly basis) with an overview of the net short positions that are potentially relevant by reason of their size.
Transparency requirements
Two-tier transparency system for shares
A two-tier transparency system exists for net short positions in shares. In the event of a net short position reaching or falling below the relevant thresholds, the net short position must be notified to the competent national authority (Articles 5 and 6 of the EU Short Selling Regulation). Pursuant to Article 5(1) and (2) of the EU Short Selling Regulation, a first-time notification must be made if the net short position reaches 0.1% of the issued share capital of the company concerned (first tier). Pursuant to Article 6(1) and (2) of the EU Short Selling Regulation, the net short position must additionally be published in the Federal Gazette (Bundesanzeiger) (publication in the Federal Gazette only) if it reaches 0.5% of the issued share capital (second tier).
Single-tier transparency system for sovereign debt
For net short positions in sovereign debt, only a notification obligation exists when the respective position reaches or falls below certain thresholds (Article 7 of the EU Short Selling Regulation). There is no publication requirement.
Transparency system for sovereign credit default swaps
Notification of uncovered positions in sovereign credit default swaps is required only if a supervisory authority suspends the restrictions on uncovered CDSs pursuant to Article 14(2) of the EU Short Selling Regulation (Article 8 of the EU Short Selling Regulation).
Electronic notification procedure
Net short positions are required to be notified to BaFin via the MVP Portal.
The details regarding this electronic notification procedure are provided in the German Regulation on Net Short Positions (Netto-Leerverkaufspositionsverordnung – NLPosV). The following steps therefore need to be taken at the latest when the first notification is submitted:
- Registration on BaFin’s Reporting and Publication Platform (MVP Portal)
- Registration for the specialised procedure for net short positions
- Notification of the net short positions using the specialised procedure
A detailed guide for the electronic notification procedure is provided in BaFin’s MVP Portal and in the MVP Portal User Manual.
Details on the publication of the net short positions are provided in the Federal Gazette (Bundesanzeiger).
