Document background
The Short Sale Agreement serves as the primary contractual framework for conducting short selling activities in the Belgian financial markets. This document is essential when an investor (short seller) wishes to sell securities they don't own, with the intention of buying them back later at a lower price. The agreement, governed by Belgian law and EU regulations, outlines critical aspects such as securities borrowing arrangements, margin requirements, settlement procedures, and risk management protocols. It ensures compliance with the Belgian Financial Law of 2014 and relevant EU directives, particularly regarding transparency and market abuse prevention. The document is typically used by financial institutions, professional investors, and broker-dealers operating in Belgian financial markets, and includes specific provisions for regulatory reporting, risk disclosures, and market conduct requirements unique to the Belgian jurisdiction.
