Update: Pan-European Short Selling Regulation – The Implications for US Market Participants
Stephen P. Wink, Vladimir Maly, Gitanjali P. Faleiro and Stefan Paulovic
Latham & Watkins
November 2012
Overview
This edition1 of our update on the pan-European short selling Regulation2 focuses on the implications of the Regulation for market participants in the United States (US). In particular, we focus on market participants whose trading activities are conducted in the US in financial instruments that have a nexus with the European Union (EU), such as a parallel EU listing of a financial instrument or an EU listing of the underlying financial instrument. Such activities, which may subject the market participant not only to the US short selling regime, but also to the Regulation,3 include short sales of (i) certain American Depositary Receipts (ADRs) of EU-listed issuers, and (ii) dual listed securities of issuers that are concurrently listed on one of the EU and US trading venues.
