Amendment Of GPW’s Short Selling Regulations - GPW No Longer Additionally Regulates Short Selling In Exchange Trading Following The Harmonisation Of Regulations With The Regulation Of The European Parliament And Of The Council

The Warsaw Stock Exchange (GPW) is amending today its regulations on short selling in exchange trading. The amendment harmonises GPW regulations with the Act of 5 December 2014 amending the Act on Trading in Financial Instruments and certain other Acts. The new Act harmonises Polish short selling regulations with the Regulation of the European Parliament and of the Council.[1]

“The European Union has introduced uniform short selling regulations for all member states. The rules applicable on GPW will be the same as on all other European exchanges. Short selling is a major facilitation for market participants enabling them to make returns not only when the market is rising but also when it is falling,” said Grzegorz Zawada, Vice-President of the GPW Management Board.

The Act repeals provisions which required GPW to impose additional special short selling regulations. As a result, as of 1 June, GPW will no longer regulate short selling in detail. This implies among others that GPW will not:

• prepare or publish a list of securities which may be subject to short sale orders;
• require special designation of short sale orders (application of a short selling flag);
• publish information on short sale transactions or trading statistics on short sale transactions.

Short selling on GPW will be subject to exchange regulations applicable to trading on the exchange in general as of 1 June 2015.

Investors are required to comply with the applicable provisions of national and EU legislation, in particular the Regulation of the European Parliament and of the Council.

Short selling is an investment strategy of selling securities which are not held by the seller. Short selling is used to make a return on falling prices of securities.