The following post comes to us from Stephen P. Wink
, partner in the Corporate Department at Latham & Watkins LLP. This post is based on a Latham & Watkins client alert by Mr. Wink, Vladimir Maly
and Gitanjali P. Faleiro; the full document, including complete footnotes, is available here
I. Introduction and Overview
As previously described in our memorandum on the pan-European short selling regulation , the European Commission (the Commission) adopted a proposal on September 15, 2010 to harmonize the regulation of short sales and credit default swaps across the European Union.  On March 14, 2012, the European Parliament and the Council of the European Union (the Council) each voted to adopt the proposed regulation, after including a number of significant amendments (the Regulation). 
The Regulation has been in force since March 25, 2012 (a day after it was published in the Official Journal) and is due to become ‘directly’ effective in the EU Member States (each a Member State) on November 1, 2012.  As such, the Regulation will become law in each Member State in its own right without the need for domestic implementing measures. On September 13, 2012 the European Securities and Markets Authority (ESMA) published its first edition of Q&A on the ‘Implementation of the Regulation on short selling and certain aspects of credit default swaps,’ in response to frequently asked questions posed by market participants, market regulators and the general public.  On September 17, 2012, ESMA published its consultation paper on the Regulation’s exemption for market making activities and primary market operations.
The Regulation brings to an end the current fragmented approach to shortsale restrictions across Member States and also establishes a ‘preventive regulatory framework’ to be used in ‘exceptional circumstances’ for ‘temporary’ periods.
…continue reading: Pan-European Short Selling Regulation