The Short Selling (Amendment) (EU Exit) Regulations 2018

PART 4 U.K. Amendments of Level 2 Legislation

Amendments of Commission Delegated Regulation (EU) No 918/2012 U.K.

15.—(1) Commission Delegated Regulation (EU) No 918/2012 of 5th July 2012 supplementing Regulation (EU) No 236/2012 of the European Parliament and of the Council on short selling and certain aspects of credit default swaps with regard to definitions, the calculation of net short positions, covered sovereign credit default swaps, notification thresholds, liquidity thresholds for suspending restrictions, significant falls in the value of financial instruments and adverse events is amended as follows.

(2) In Article 1, in the final sub-paragraph, omit “and Article 27 and the threats referred to in point (a) of Article 28(2)”.

(3) In Article 2—

(a) for paragraph (a) substitute—

“(a) “group” means a parent undertaking and its subsidiary undertakings, and for these purposes, “parent undertaking” and “subsidiary undertaking” have the meanings given in section 420 of the Financial Services and Markets Act 2000;”;

(b) omit paragraph (b).

(4) In Article 8—

(a) in paragraph 1, omit “of different sovereign issuers”;

(b) in paragraph 3—

(i) omit “and with paragraphs 4 and 5”;

(ii) omit the second sentence;

(c) omit paragraphs 4, 5 and 6.

(5) In Article 14, in paragraph 1—

(a) in point (a), for “same Member State” substitute “ United Kingdom ”;

(b) in point (b), in the opening words, for “same Member State” substitute “ United Kingdom ”;

(c) for point (b)(i), substitute—

“(i) references the United Kingdom, including any government department, agency or special purpose vehicle of the United Kingdom;”;

(d) in point (c)(i), for “a Member State” substitute “ the United Kingdom ”.

(6) In Article 15—

(a) in the heading, for “more than one Member State” substitute “ the United Kingdom and a third country ”;

(b) in paragraph 1—

(i) in the opening words, for “more than one Member State” substitute “ the United Kingdom and a third country ”;

(ii) in sub-paragraph (a)—

(aa) for “one Member State” substitute “ a third country ”;

(bb) for “another Member State” substitute “ the United Kingdom ”;

(cc) for “in the Member State” substitute “ in the country ”;

(iii) in sub-paragraph (b)—

(aa) for “different Member States” substitute “ third country ”;

(bb) for “Member State of” substitute “ country of ”;

(iv) in sub-paragraph (c)—

(aa) for “in one Member State” substitute “ in the United Kingdom ”;

(bb) for “second Member State” each time it appears, substitute “ third country ”;

(cc) for “in both Member States” substitute “ in the United Kingdom and the third country ”;

(dd) for “debt of the Member State in which the company is established” substitute “ debt of the United Kingdom ”;

(c) in paragraph 2, in sub-paragraph (a), for “across the Union” substitute “ in the United Kingdom and in a third country ”;

(d) after paragraph 2, insert—

“3.   For the purposes of this Regulation, “sovereign debt” in relation to a third country means a debt instrument issued by—

(a) a third country, including a government department, an agency or a special purpose vehicle of the third country; or

(b) in the case of a federal country, a member of the federation.

4.   For the purposes of this Article, “supra-national issuer” means—

(a) the Union;

(b) a special purpose vehicle for several third countries;

(c) an international financial institution established by two or more countries which has the purpose of mobilising funding and providing financial assistance to the benefit of its members that are experiencing or threatened by severe financing problems; or

(d) the European Investment Bank.”

(7) In Article 16—

(a) in the opening words, for “competent authority” substitute “ FCA ”;

(b) in points (a) and (b), for “that competent authority” substitute “ the FCA ”.

(8) In Article 17—

(a) in point (c), for “Member State whose sovereign debt is referenced in the credit default swap” substitute “ United Kingdom ”;

(b) in point (d), for “Member State which is referenced in the sovereign credit default swap” substitute “ United Kingdom ”.

(9) In Article 18—

(a) in paragraph 2(b), for “Member State” substitute “ United Kingdom ”;

(b) in paragraph 3, for “relevant competent authority” substitute “ FCA ”.

(10) In Article 19, in the second sentence of paragraph 1, for “competent authority” substitute “ FCA ”.

(11) In Article 21, in paragraph 1, for “relevant competent authority” substitute “ FCA ”.

(12) In Article 22—

(a) in paragraph 1, for “each competent authority” substitute “ the FCA ”;

(b) in paragraph 3—

(i) for “each competent authority” substitute “ the FCA ”;

(ii) omit “, and inform ESMA of the data used thereafter”;

(c) in paragraph 4—

(i) for “competent authorities exercise” substitute “ FCA exercises ”;

(ii) for “they” substitute “ it ”.

(13) In Article 24—

(a) in paragraph 1—

(i) in the opening words—

(aa) for “Member State concerned” substitute “ United Kingdom ”;

(bb) omit “or in one or more other Member States”;

(ii) in point (a)—

(aa) for “a Member State” substitute “ the United Kingdom ”;

(bb) for “Union”, both times it occurs, substitute “ United Kingdom ”;

(iii) in point (b)—

(aa) for “any Member State” substitute “ the United Kingdom ”;

(bb) for “Union” substitute “ United Kingdom ”;

(iv) in point (c) for “Union” substitute “ United Kingdom ”;

(v) in point (e)—

(aa) for “Union” substitute “ United Kingdom ”;

(bb) for “a Member State” substitute “ the United Kingdom ”;

(b) omit paragraphs 2 and 3.

Commencement Information

I1 Reg. 15 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(2)