Fri, Aug 18, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

EU publishes proposal for Directive regulating transparency and short selling

Monday, October 31, 2011
Opalesque Industry Update - On 25 October 2011, the European Commission published the provisional text of a proposal for a directive to amend the Transparency Directive ("TD"), together with an impact assessment, and some frequently asked questions. This came hot on the heels of the agreement reached between the European Parliament and the Presidency on 18 October 2011 for a Short Selling Regulation.

Disclosure of Long CfDs

The amended TD will plug the gap in shareholding notification requirements that enabled stake-building by way of cash-settled derivatives without any notification requirement. Currently, as well as shares, the TD requires disclosure of financial instruments that give a legal right to acquire on the holder's own initiative alone shares already in issue and with voting rights attached. These are defined by the FSA as "qualifying financial instruments" and the TD requires holdings of qualifying financial instruments to be aggregated with holdings of shares for the purposes of the notification thresholds. Under the amended TD, the disclosure requirements will extend to financial instruments with similar economic effects to qualifying financial instruments. These are financial instruments that do not give the holder a legal right to acquire shares, but have a similar effect in practice; that is where the instruments are referenced to an issuer’s shares and the holder has a long position on the shares’ economic performance, whether or not the instrument is capable of being settled physically in shares or in cash. Examples are purchases of Contracts for Differences (CfDs) and cash-settled call options or the writing of a put option, as each is referenced to and gives a long position in the shares’ economic performance.

Source

Press release

bc

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: Albright Capital puts a value lens on emerging markets[more]

    Bailey McCann, Opalesque New York: Over the past decade, investors have steadily increased investments in emerging markets private funds. Allocations to the cohort have increased from $93 billion in December 2006 to $564 billion in September 2016, according to data from research firm Preqin. Howe

  2. Jasper Capital International joins Hedge Fund Standards Board[more]

    Komfie Manalo, Opalesque Asia: Diversified and systematic investment firm Jasper Capital International has become the second China-based signatory to the Hedge Fund Standards Board (HFSB), an organization that brings hedge fund managers and investors together to set standards for the hedge fund i

  3. FinTech - Danger: Crowdfunding on the wrong platform could force you to go public[more]

    From LinkedIn.com: Some equity crowdfunding platforms are putting startups at serious risk. Working with a platform that doesn't structure your deal appropriately could jeopardize your ability to raise future capital or worse, force you to become a public reporting company. The emergence of eq

  4. David Tepper says we're 'nowhere near an overheated' stock market[more]

    From Marketwatch.com: Billionaire David Tepper thinks comparing this current stock-market environment with the overheated markets of 1999 is "ridiculous." The hedge-fund manager, who runs Appaloosa Management, told CNBC in a phone interview on Tuesday that the market's record run, notwithstanding la

  5. Opalesque Exclusive: Altegris and Artivest partner on distribution for alternative funds suite[more]

    Bailey McCann, Opalesque New York: California-based investment firm Altegris has partnered with New York-based alternative investments platform Artivest on distribution for $1 billion in alternative funds. The partnership also launches Artivest's capabilities to offer alternative solutions to acc