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Michel Barnier Bailey McCann, Opalesque, New York:

The European Commission has adopted new technical standards for short selling, the new rules are aimed at reducing the risk of settlement failures linked to naked short selling and changing the way shorting activities are reported. The new rules also set out the details of the so-called "locate rule," which make sure that short sales never fail to deliver. The rules are the result of work with the European Securities and Markets Authority (ESMA) and also detail which shares ESMA will count as part of a short sale under the Short Selling Regulation.

Under the terms of the new rules, significant net short positions will have to be disclosed on a central website that will show to the public both current and historical short position data. Settlement agreements on short sales will also have to have two confirmations by a third party. Separate specific agreements can be made for intra-day short selling.

The Implementing Regulation is part of a package of four implementing measures that the Commission will adopt to specify technical aspects of the Short Selling Regulation. A Delegated Regulation on regulatory technical standards was also adopted by the Commission. "The new rules give public authorities and market participants legal certainty on the detailed requirements which short sellers must comply with to adequately ensure......................

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