ESMA has published a peer review report on compliance with the Short Selling Regulation in the context of market making activities. The aim of the review was to assess how national competent authorities (NCAs) apply the exemption for market making activities in Article 17 of the Regulation. Exempted market makers are not subject to the restrictions on uncovered short sales, or to the reporting and public disclosure obligations on significant net short positions in shares or sovereign debt. ESMA focused on whether NCAs are applying the general principles and eligibility criteria for the exemption in compliance with ESMA guidelines. The review was limited to five NCAs, of which only one is compliant with the guidelines, while the remainder are partially non-compliant to differing degrees. ESMA considers that the areas of concern identified during the review deserve further consideration, but has confirmed that it does not intend to take any further action at this time as a result of the forthcoming Commission review.