Notification of net short positions in sovereign debt

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Articles 7 and 8 of Regulation (EU) No. 236/2012 introduced the obligation to notify the competent authorities of significant individual net short position in sovereign debt and uncovered positions in sovereign credit default swaps. In particular, according to the Memorandum of Understanding between the Ministry of Economy and Finance, the Bank of Italy and Consob, signed pursuant to Article 4-ter, paragraph 6, of the Consolidated Law on Finance, notifications of net short positions in Italian government securities and uncovered positions in credit default swaps on the Italian Republic must be made to the Bank of Italy by natural or legal persons wherever resident.

These notifications must be transmitted via the INFOSTAT system, which, as provided for by EU legislation, allows the holder of the net short position or uncovered position to appoint a third-party reporting person to submit the notifications. It is necessary in any case to register in advance with the INFOSTAT system, following the instructions contained in the User Guide (in English).

After registration, it is necessary to complete an “Accreditation request” giving the identification data of the position holder and of the reporting person (if different from the holder). The form is to be e-mailed to shortselling@bancaditalia.it, accompanied by a copy of the identity document of a contact person and, where applicable, a copy of the mandate conferred by the holder on the reporting person. After the conducting the necessary checks, the Bank of Italy will communicate accreditation for the purposes of transmitting notifications.

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