The EU Short Selling regulation
Produced in partnership with Orrick, Herrington & Sutcliffe
The EU Short Selling regulation

The following Financial Services practice note produced in partnership with Orrick, Herrington & Sutcliffe provides comprehensive and up to date legal information covering:

  • The EU Short Selling regulation
  • Background
  • Purpose of the Short Selling Regulation
  • Key provisions of the Short Selling Regulation
  • Disclosure requirements for short positions—Chapter II (Articles 5–9)
  • Uncovered short sales—Chapter III (Articles 12–15)
  • Exemptions to the Short Selling Regulation—Chapter IV (Articles 16 and 17)
  • Emergency powers for national regulators and ESMA—Chapter V (Articles 18–31)
  • EU Commission’s delegated acts
  • Summary of supplementary provisions
  • More...

BREXIT: 11pm (GMT) on 31 December 2020 (‘IP completion day’) marked the end of the Brexit transition/implementation period entered into following the UK’s withdrawal from the EU. Following IP completion day, key transitional arrangements come to an end and significant changes begin to take effect across the UK’s legal regime. This document contains guidance on subjects impacted by these changes. Before continuing your research, see: Brexit and financial services: materials on the post-Brexit UK/EU regulatory regime.

This is part one of three linked Practice Notes; it is advisable to read all three Practice Notes to get a rounded picture of the short selling regime.


Following the collapse of Lehman Brothers on 15 September 2008, global financial markets went through a volatile few weeks in which governments in countries throughout the world intervened in their financial markets to implement various emergency measures aimed at stemming turbulent market conditions. One example was prohibiting short selling in financial markets in certain circumstances.

The former Committee of European Securities Regulators (CESR) (now the European Securities and Markets Authority (ESMA)) decided at a plenary meeting on 30 September 2008 to set up a dedicated task force to review the different EU Member States’ measures on short selling with a view to formulating pan-European standards.

In March 2010, CESR published its report to the EU institutions proposing a Pan-European Short Selling Disclosure Regime.

Regulation (EU)

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