AFM asks for comments on draft policy rule on the definition and calculation of short positions

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The Netherlands Authority for the Financial Markets (AFM) has drawn up a draft policy rule on the definition and calculation of a short position within the meaning of the Wft. The above is related to the new regulations that will enter into effect later this year. The AFM calls on market parties and other stakeholders to comment on this policy rule.

The Act of 15 November 2012 amending, inter alia, the Financial Supervision Act will enter into effect on 1 July 2013. This is taking place pursuant to the recommendation of the Corporate Governance Code Monitoring Committee of 30 May 2007. This legislative amendment will reduce the first threshold value from five to three percent, but it will also introduce the notification of a short position. This obligation to notify will apply next to the obligation to notify a net short position under the Short Selling Regulation.

During the debate of the legislative proposal in the Senate, parties asked the Minister of Finance whether more clarity can be provided in a further (policy) decision concerning the definition of a short position and the calculation thereof. The Minister has promised that he would provide more clarity by adopting rules to be determined in greater detail. This policy rule provides these rules.

The AFM would like to receive responses by 26 April 2013 at the latest at stating 'Consultation on draft Policy rule concerning the definition and calculation of a short position within the meaning of the Wft'.


The AFM calls on interested parties to comment on this draft. The AFM has the following specific questions in this connection:

  1. Do you agree with the purport of this policy rule? If not, what do you disagree with and for what reasons?
  2. Do you foresee any problems with respect to the implementation of this policy rule? If so, what problems do you foresee, for what reasons, and how can these problems be prevented or resolved, in your opinion?
  3. What changes do you consider necessary?

The AFM is committed to promoting fair and transparent financial markets.

As an independent market conduct authority, we contribute to a sustainable financial system and prosperity in the Netherlands.

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