As the Short Selling Regulation is directly applicable in each Member State, the European Securities and Markets Authority (ESMA) coordinates the interpretation of the regulation. ESMA has published Questions & Answers (Q&A) on more general issues on its website on short selling:
Reporting of net short positions under the Short Selling Regulation must be done via the Danish FSA’s OAM system (‘Officially Appointed Mechanism’). If you are able to receive a Danish digital signature (NemID) you are required to use this type of login method. However, a Danish digital signature normally requires a Danish national business ID (CVR no.) if you represent a company, or a Danish national personal ID (CPR no.) if you are a natural person. Therefore, foreign users and companies have the option to apply for a username and password to the OAM system. This can be done via the ‘Register’ button in the top right corner of the OAM website. You can also find a guide for registration with username and password.
Please note that your application for access to the OAM system with username and password will have to be processed and accepted before you are able to submit your first net short positions.
You should also be able to find the total share capital in the issuer's annual report; normally it will be an item under equity. If you read the annual report, you also have to check if, after the publication of the annual report, the issuer has issued any company announcements regarding the share capital.
The reporting obligation arises when crossing the threshold of 0.2 pct. and when crossing a threshold of 0.1 pct. of this. This means that the next obligation to notify arises when crossing the threshold of 0.3 pct. and subsequently when crossing thresholds of 0.4 pct., 0.5 pct. etc. up- or downwards. As stated above you can find a Q&A on general questions of understanding the regulation at ESMA's website. The same response can be found in questions 2f and 2g, which also address rounding off positions.
An overview of net short positions in Danish shares can be found directly on the OAM website through the menu ‘Statistics and extraction’. The overviews are updated automatically and in real-time when new positions are submitted through the system. You can also download the overviews in excel.
Spreadsheets with complete historical data on net short positions can be found on the Danish FSA’s website. These spreadsheets will be updated on a monthly basis
Yes, generally the use of the market maker exemption under article 17 of the regulation must be notified to the competent authority 30 days prior to the use of the exemption. However in some particular instances (e.g. in connection with initial public offering) the Danish FSA may give a positive response to the market maker upon request. The exemption may then be used from the date on which the market maker receives confirmation from the Danish FSA that we do not intend to refuse the use of the exemption on the specific instrument.
This procedure is found in paragraph 17 of ESMA's Guidelines on Exemption for market making activities and primary market operations under Regulation (EU) 236/2012 of the European Parliament and the Council on short selling and certain aspects of Credit Default Swaps (ESMA/2013/74). The Danish FSA has announced that it will follow the ESMA Guidelines, and therefore this process will be followed.