On 24 January 2012 the European Securities and Markets Authority (ESMA) issued its first consultation paper on draft regulatory and implementing technical standards in connection with the proposed "Regulation of the European Parliament and of the Council on Short Selling and Certain Aspects of Credit Default Swaps" (the Regulation).
The Regulation was approved by the Parliament on 15 November 2011. The Council has indicated that it anticipates adopting the Regulation on 21 February 2012, with signature to be scheduled for 14 March 2012, and publication to follow within four to six days thereafter. These dates are tentative and are subject to change.
The Regulation is due to enter into force on 1 November 2012 and will then be binding and directly applicable in all Member States.
Because of the tight timetable established by the text of the Regulation, the process for the production of technical standards and advice is being compressed: responses to the consultation are due by 13 February 2012. A second consultation paper on proposed technical advice from ESMA to the Commission on delegated acts is to be issued shortly, and will also consult on a regulatory technical standard on the method of calculation of the fall in value of a financial instrument. ESMA will consider the feedback received and will publish a final report along with its submission of draft technical standards to the European Commission by 31 March 2012.
This briefing discusses some of the key aspects of this consultation paper, with a focus on those elements that are likely to raise further discussion. For more information on the background to this legislation please see our November 2010 bulletin here. A fuller briefing on the Regulation will be published when the Council formalises its agreement.
Please click here for our briefing on the draft technical standards.
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