Sun, Mar 26, 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. Hedge fund liquidations in 2016 surpass 2009 levels, new launches decline[more]

    Benedicte Gravrand, Opalesque Geneva: Even as the hedge fund industry's total assets exceeded the $3tln milestone last year, hedge fund liquidations increased. So much so that 2016 had the highest number of liquidations since 2008, claims the latest HFR Market Microstructure Report, re

  2. Hedge funds find no joy in macro as returns lag Trump rally[more]

    From Gulfnews.com: In 2017, macro hedge funds were expected to shine. So far? Not so much. It's been a far from impressive first two months for funds that trade around macroeconomic events. Discretionary funds rose just 0.3 per cent through February, according to Hedge Fund Research Inc., while the

  3. Strategies - Billionaire investor Marc Lasry shares how he's playing markets right now, Classic models are failing FX hedge funds desperate for return[more]

    Billionaire investor Marc Lasry shares how he's playing markets right now From CNBC.com: Buy on the prospect of deregulation. Sell on the enactment of deregulation. That's the strategy that billionaire investor Marc Lasry is implementing, according to an interview with CNBC in Las Vegas

  4. Opalesque Exclusive: Aberdeen makes the case for the lower mid-market[more]

    Bailey McCann, Opalesque New York: Aberdeen Asset Management has released a new paper focused on lower mid-market private equity. According to the paper, this segment of the private equity market is gaining popularity with private equity investors that are looking for multiple expansion and less

  5. Hedge funds await outcome of French elections, feel pinch on lower oil prices & weak dollar[more]

    Komfie Manalo, Opalesque Asia: Hedge funds felt the pinch of lower oil prices and weak U.S. dollar as the Lyxor Hedge Fund Index was marginally down as of the week ending 14 March, Lyxor Asset Management said in its Weekly Briefing. The Lyxor He