CHAPTER IITRANSPARENCY OF NET SHORT POSITIONS

Article 7Notification to competent authorities of significant net short positions in sovereign debt

1.

A natural or legal person who has a net short position relating to issued sovereign debt shall notify the F1FCA, in accordance with Article 9, where such a position reaches or falls below the relevant notification thresholds for the sovereign issuer F2....

2.

The relevant notification thresholds shall consist of an initial amount and then additional incremental levels in relation to F3the sovereign issuer, as specified in the measures taken by the Commission in accordance with paragraph 3 F4before IP completion day, or in regulations made by the Treasury in accordance with that paragraph as amended. F5The FCA shall publish on its website the notification thresholds for the United Kingdom.

3.

The F6Treasury may by regulations specify the amounts and incremental levels referred to in paragraph 2 of this Article.

The F7Treasury shall:

(a)

ensure that the thresholds are not set at such a level as to require notification of positions which are of minimal value;

(b)

take into account the total amount of outstanding issued sovereign debt for F8the sovereign issuer, and the average size of positions held by market participants relating to the sovereign debt of F9the sovereign issuer; and

(c)

take into account the liquidity of F10the sovereign bond market.