Big changes ahead for those who frequent the financial markets. The new EU regulation on short selling will come into force on XNUMX November and on some rules relating to CDS (credit default swaps, derivatives that insure against the default risk of other securities). The text was implemented in the development decree and will render mandatory to communicate to the competent national authorities (in our case to Consob and the Bank of Italy) individual net short positions on listed shares and government bonds. The obligation will start when the threshold is reached 0,2% of the issuer's share capital or a specific value for government bonds.
The ban on naked short selling (i.e. without the availability of titles) on shares and government bonds. Furthermore, it will not be possible to take speculative positions on the CDS linked to sovereign issuers. The rules will be valid both on traditional markets both on over-the-counter ones. “Communication obligations and prohibitions – specifies Consob – do not apply to primary dealers of government bonds and sovereign CDSs and to market makers, on condition of prior notification of the exemption to the competent supervisory authority”.
Starting from XNUMX November, investors will have to send Consob their net short positions on shares using the reporting system published on the website www.consob.it in the "Markets" section, "Short Selling" subsection. Reports of net short positions on equities they will be published on the Consob website if they reach 0,5% of the share capital.
