Short Selling
Go backRegulation (EU) No 236/2012 of the European Parliament and of the Council of 14 March 2012 on short selling and certain aspects of credit default swaps (Short Selling Regulation) was adopted on 14 March 2012 and has applied in the Republic of Croatia as of 1 July 2013.
The obligation to notify net short positions applies to all investors and market participants. A net short position in relation to the issued share capital of a company whose shares are admitted to trading on a trading venue must be disclosed where the position reaches, exceeds or falls below the threshold of 0.1% of the company’s issued share capital. A new notification must be submitted for each 0.1% above the threshold.
The Croatian Financial Services Supervisory Agency (Hanfa) will publish any notified net short position that reaches, exceeds or falls below the threshold of 0.5% of the relevant company’s issued share capital on its website. Public disclosures of significant net short positions in shares pursuant to Article 6 of the Short Selling Regulation can be found here.
A net short position relating to issued sovereign debt must also be notified to Hanfa where such a position reaches, exceeds or falls below the notification threshold. As regards the debt issued by the Croatian government, net short position notification thresholds can be found here. Short positions in sovereign debt will not be published.
Any queries in relation to the Short Selling Regulation should be addressed to: shortselling@hanfa.hr.
Prior to submitting its first notification, the position holder – legal person should submit a signed, scanned copy of the company registration certificate and contact information of the reporting person (when different from the position holder) by email to shortselling@hanfa.hr. Prior to submitting their first notification, the position holder – natural person should submit a scanned copy of their identification card or passport (first page) and contact information including contact information of the reporting person (when different from the position holder) by email to shortselling@hanfa.hr.
The original documentation or a certified copy of the original documentation should follow by post to: Hrvatska agencija za nadzor financijskih usluga (Croatian Financial Services Supervisory Agency), Franje Račkog 6, 10 000 Zagreb, Republic of Croatia.
Notifications submitted to Hanfa without a prior submission of the requested documentation and above-mentioned information will be rejected. Where a notification has been rejected, it is the responsibility of the position holder to resubmit the notification with all the requested documentation and information in order to ensure compliance with their obligations under the Short Selling Regulation.
Notifications to Hanfa in accordance with Articles 5, 7 and 8 of the Short Selling Regulation should be made using the appropriate forms:
- Notification - significant net short position in shares
- Notification - significant net short position in sovereign debt
- Notification - uncovered position in sovereign credit default swaps
The relevant time for calculation of the net short position is midnight at the end of the trading day on which the natural or legal person holds the relevant position. Short positions must be notified to Hanfa not later than by 15.30 on the following trading day.
Hanfa will publish notified short positions exceeding the threshold during the following trading day.
Where a notification form is rejected, it is the responsibility of the position holder to submit an amended notification form to Hanfa to ensure compliance with their obligations under the Short Selling Regulation.
Where a previously submitted notification form contains an error, a cancellation form should be submitted as soon as possible to Hanfa to cancel the erroneous submission. The cancellation forms are available here:
- Notification - cancelled significant net short position in shares
- Notification - cancelled significant net short position in sovereign debt
- Notification - cancelled uncovered position in sovereign credit default swaps
Notifications and cancellations of erroneous notifications are made by sending the notification forms to shortselling@hanfa.hr.
Notification forms should be sent to Hanfa in Excel and PDF format. Signed notification forms should follow by post to: Hrvatska agencija za nadzor financijskih usluga (Croatian Financial Services Supervisory Agency), Franje Račkog 6, 10 000 Zagreb, Republic of Croatia.
Article 17 of the Short Selling Regulation stipulates an exemption for market makers and primary dealers from the restrictions applying to naked short selling and the transparency requirements regarding net short positions. Hanfa complies with the 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. Anyone intending to make use of this exemption must submit a written notification to Hanfa not less than 30 calendar days before they first intend to use the exemption.
Notifications are made by sending the notification forms to shortselling@hanfa.hr and by post to: Hrvatska agencija za nadzor financijskih usluga (Croatian Financial Services Supervisory Agency), Franje Račkog 6, 10 000 Zagreb, Republic of Croatia.
Notification form:
