On 29 September 2014, the European Securities and Markets Authority (ESMA) published its draft Regulatory Technical Standards (RTS) under the revised Transparency Directive. The draft RTS support the objectives of the revised Directive by facilitating the creation of a harmonised regime regarding the aggregation of holdings of shares and financial instruments, the calculation of notification thresholds and the exemptions from notification requirements. 

The draft RTS on major shareholding notifications addresses the following issues: 

  • Method of calculation of 5% threshold exemption regarding trading books and market makers;
  • Calculation method regarding a basket of shares or an index;
  • Methods for determining the ‘delta’ for calculating voting rights; and
  • Financial intermediaries' notification regime of financial instruments.

The Final Report also sets out the indicative list of financial instruments which are subject to the notification requirements laid down in the Directive.