Sat, Apr 29, 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: Ex-Man manager combines sustainable investing with AI/ML[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Dr. Richard Bateson, quant fund manager and physicist, has recently

  2. Other Voices: "Winner-take-all" dynamics and hedge fund investing[more]

    A growing stream of thinking in microeconomics is the concept of "winner-take-all" dynamics. The idea seems simple. A combination of networking economics and classic economies of scale creates situations where there are just a few dominant firms or economic agents who are able to capture significant

  3. Investing - How Chipotle's comeback attracted big data robots and value investors alike[more]

    From Forbes.com: When William Ackman's ailing hedge fund Pershing Square Capital Management bet $1 billion on shares in Chipotle Mexican Grill beginning in July 2016, the stakes couldn't have been higher. Pershing Square was reeling from what would eventually be a near $4 billion loss in drugmaker V

  4. Gondor Capital sees challenges ahead for financial markets as two hedge funds post strong gains in Q1[more]

    Komfie Manalo, Opalesque Asia: Vincent Au, portfolio manager of New York-based hedge fund firm Gondor Capital Management believes that the remaining of the year would be challenging for the financial markets even as his two hedge funds maintain

  5. Service Providers - Colemore launches fee tracking service for limited partners[more]

    Following Colmore's successful launch in January 2017, the firm has announced the launch of FAIR.. FAIR is designed to help private equity investors independently validate fees and incentives charged by underlying managers, saving time and providing an extra level of comfort. There is a glob