March 2012

The London Stock Exchange has provided a response to ESMA’s consultation (2012/98) on possible Delegated Acts in the EU Regulation on short selling and certain aspects of credit default swaps.

In our submission, we highlight the following points:

• LSEG believes that the timescales set by ESMA hamper its ability to deliver to the Commission, the best possible advice of high quality and to credible standards
  
  
• LSEG believes that due to lack of sufficient time, ESMA has been unable to consider in satisfactory detail the impact of the proposals on market participants.
  
  
• Concerning the trigger points for of what constitutes a significant fall in value for bonds, we suggest that to prevent the price change of a relatively small number of basis points from activating the trigger point for low-yield bonds, regulators use a combination of a minimum percentage yield in conjunction with a minimum absolute change in yield values before considering a ban.
  

LSEG Response to ESMA Consultation on possible Delegated Acts in the EU Regulation on short selling and certain aspects of credit default swaps (file pdf - 286 KB)