Consultation on amendments to recommendations for consistent implementation of Prospectus Regulation

CESR is holding a consultation on an update of its recommendations for the consistent implementation of the Regulation on Prospectuses. The proposed amendments relate to the 17 article 19.4 MiFID 18 Article 53(3) UCITS Directive (2009/65/EC) information to be included by mining and oil and gas companies.

Model for a Pan-European Short Selling Disclosure Regime

CESR has published a proposal for a pan- European short selling disclosure regime. It applies to significant net short positions in shares admitted to trading on a regulated market or MTF in the European Economic Area. A position which reaches, passes or falls below the threshold value of 0.2% has to be disclosed to the relevant supervisory authority. Positions which reach, pass or fall below a threshold of 0.5% are to be disclosed to the entire market. All further 0.1 % changes have to be disclosed as well (0.3% and 0.4% thresholds only to the supervising authority; higher thresholds also to the market). CESR members which have the power to introduce a permanent disclosure regime for short positions will make a start with the implementation of the CESR proposal. The other CESR members will implement on a best efforts basis until the European regime enters into force. The latter applies to the AFM, which is authorized in special circumstances to set generally binding rules for a limited period of time19. Finally, the CESR has published an updated list of measures taken by its members to counter short selling.

Review of Market Abuse Directive implementation

CESR has outlined how the different member states have used the options and discretions offered by the Market Abuse Directive20. CESR has found several areas where there was a divergence in implementation, including:

  • the applicability of MAD rules on Multilateral Trading Facilities;
  • the notification requirement for persons in management positions;
  • the obligation to immediately inform the competent authorities of a decision to postpone the disclosure of inside information;
  • the publication of imposed measures or sanctions;
  • the rules on reporting suspicious transactions.

In its report CESR makes a number of recommendations to increase convergence of the rules. The report is also submitted to the European Commission, which will use it in its review of the Directive.

Frequently asked questions about rating agencies

CESR has published a FAQ-list with regard to the Regulation on Credit Rating Agencies21. The regulation entered into force on 7 December 2009 and will apply from 7 June 2010.