New rules on notifying short positions in listed companies will come into force on 1 November 2012. A position has to be notified to the AFM when the position reaches or exceeds a "notification threshold". This threshold is 0.2% of the company's issued share capital and each subsequent 0.1% above this. When a "disclosure threshold" is reached or exceeded, information about the position must be made public via the registers of the AFM. The disclosure threshold is initially 0.5% of the company's issued share capital and, subsequently, each 0.1% above this. Net short positions in government debt must also be notified to the AFM when they reach certain thresholds. The notification requirements do not apply to market makers and liquidity providers, provided that they registered with the Netherlands Authority for the Financial Markets (AFM) before 1 October 2012.
The new rules arise from the EU Regulation of 14 March 2012 on short selling and certain aspects of credit default swaps (no. 236/2012), which introduces common notification requirements for short selling and harmonises the power of supervisors in the event of a serious threat to financial stability. The EU Directive applies from 1 November 2012.
In addition, an implementing regulation and a delegated regulation concerning short selling came into force on 19 September 2012. These regulations will also apply from 1 November 2012.
The current rules for notifying short positions in financial undertakings to the AFM will expire on 1 November.
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