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FESE Members are glad to have the opportunity to contribute to ESMA's consultation. FESE does not think that futures and options generally represent an adequate agreement to borrow or other enforceable claim for uncovered short sales. Futures and options typically have a medium- to long-term duration (months or years) that largely exceeds that of a naked short sale (some days). Therefore FESE does not think that futures and options should be part of the list proposed by ESMA. However, FESE believes that that American‐style options (i.e. one that can be exercised at anytime during its life), because of its very nature, should be given due consideration as part of the list of “agreements to borrow or other enforceable claim (…)” proposed by ESMA.
FESE Members suggest that the information to be provided to ESMA by competent authorities regarding the net short positions in shares, sovereign debt and uncovered sovereign CDS should be provided more often than on a quarterly basis. This would help ESMA to monitor the market adequately and to adjust more rapidly to market changes.
FESE encourages the Commission and ESMA to clarify in the technical standards that buy‐in and fines regimes should apply to all transactions in shares and not only those cleared through a CCP. If this is not possible, FESE considers that the provision should be deferred until clarification in the upcoming proposal for the CSD Regulation.