On 9 February 2010, the Committee of European Securities Regulators (CESR) published a consultation paper on a proposal to extend major shareholding notifications to instruments of similar economic effect to holding shares and entitlements to acquire shares.

Instruments that create a similar economic effect to holding shares and entitlements to acquire shares effectively create a long economic exposure to the issuer. These instruments are currently outside the legal scope of the Transparency Directive (TD). CESR intends to widen this scope to include all instruments referenced to shares that allow the holder to benefit from an upward movement of the price of these shares.

Whilst seeking to broaden the scope of the TD's major shareholding disclosure regime, CESR does not seek to change the general principles underlying the current regime. The scope of the broadened disclosure regime is to remain limited to instruments referenced to shares to which voting rights are attached, already issued, of an issuer whose shares are admitted to trading on a regulated market.

The deadline for comments on the consultation paper is 31 March 2010.

View CESR proposal to extend major shareholding notifications to instruments of similar economic effect to holding shares and entitlements to acquire shares, 9 February 2010