With all the time we’ve spent discussing global markets recently, we thought it made sense to take a look back at a piece from November’s issue of the Better IR newsletter. Specifically, the article on short selling in Europe.
The article took stock of how the new rules on short selling – passed back in November of 2012 – were impacting the European markets.
From November 2014’s Better IR: “A Shorts Story – Part Deux”
Back in November 2012 the European Union passed a set of new rules on short selling. These first ever pan-EU set of rules imposed disclosure requirements harmonized across countries in the region. The new rules applied to all securities whose principal trading venue was in the EU. Shares of a company based outside the EU whose principal trading venue was also outside the EU, was exempt from the requirements even if they had a listing within the EU.
The requirements included public notifications of shorts at or above 0.5% of the shares capital and for every subsequent move up or down of 0.1%. We examined all the resulting disclosures as of end of 2012 in our January 2013 issue of BetterIR. Since then the data mavens at Ipreo have been continuously recording these disclosures, allowing us to take a fresh and relatively expansive look at what the negative Nellies of the investing world have been up to in Europe.