The short selling register is a publicly available database maintained by the Polish Financial Supervision Authority (KNF), whose purpose is to disclose information on the largest short positions taken in companies listed on the Warsaw Stock Exchange. It contains detailed data on institutional investors who have exceeded the statutory thresholds for short positions. Thanks to this, market participants gain access to information on which companies are the subject of speculation regarding a decline in price.

Table of contents

• What is the KNF short selling register?
• What is short selling?
• Why does the KNF publish the short selling register?
• How does the short selling register work?
• How to find the short selling register?
• What does the presence of a company in the register mean?
• Is short selling always a bad thing?
• How can investors use the short selling register?
  • Warning signal
  • Sentiment verification
  • Searching for opportunities
• Examples of situations when it is worth analyzing the short selling register
• How to interpret changes in the register?
• What are the limitations of the short selling register?
• The short selling register and other analytical tools
• Is it worth following the register regularly?

The KNF register ensures transparency of the activities of the largest market participants, which facilitates better investment decision-making and allows for the observation of potential risks associated with specific companies.

What is short selling?

Short selling is an investment strategy in which an investor borrows shares, sells them on the market, and then buys them back in the hope that their price will fall. The profit comes from the difference between the sale price and the lower buyback price. Although this strategy involves risk, it is an important element of the functioning of capital markets.

Why does the KNF publish the short selling register?

The purpose of the short selling register is to ensure market transparency and investor protection. The KNF, as a supervisory authority, strives for equal access to market information. Thanks to the register, investors can:

• identify potential market threats faster,
• analyze the activities of large market players,
• avoid investing in companies under high selling pressure,
• make investment decisions based on more complete data.

The publication of data from the short selling register also has a preventive effect. It limits the risk of stock price manipulation through the disclosure of information on large short positions. It shows which companies are under supply pressure resulting from short selling.

Worth a read: https://parkietfinansowy.pl/akcje-co-musisz-wiedziec/

How does the short selling register work?

Under the EU Regulation on Short Selling and Derivatives, any investor who holds a short position exceeding a certain percentage threshold is required to report it.

There are two reporting thresholds:

• 0.1% of the company’s capitalization – the position must be reported to the PFSA but is not publicly disclosed,
• 0.5% of the company’s capitalization – the position must be publicly disclosed in the short selling register.

Short positions are reported by investors to the PFSA and then published in a register maintained on the Commission’s website. The register is updated every business day and contains data from the previous day.

The current short selling register can be found on the KNF website: https://rss.knf.gov.pl/rss_pub/

KNF short selling register from 25.03.2025
 Source: KNF website RSS

The short selling register publishes information such as:

• company name,
• date of opening the position,
• level of share in capitalization,
• name of the reporting institution.

It is worth knowing that investors are required to update data for each change in position by at least 0.1 percentage points. Closed positions must also be reported.

The reporting system ensures greater market transparency, and the register itself can be a helpful source of data when analyzing sentiment towards individual companies.

How to find the short selling register?

The register is located on the website of the Polish Financial Supervision Authority: https://www.knf.gov.pl. To find it, go to the tab:

„Capital market” → „Net short positions.”

Direct access to the register is possible via:

• online browser – the register in a table format with sorting and filtering options,
• Excel file – for download with archived data from individual days.

The website also contains instructions on reporting items and the legal basis for publishing data. It is worth bookmarking the website and following it regularly, as well as ESPI announcements or the calendar of publications of company results.

What does it mean if a company is listed in the register?

If a company is listed in the register, it means that at least one investor has taken a significant short position in it, exceeding the threshold of 0.5% of capitalization. Such a presence can be interpreted in several ways:

• as a signal that professional investors expect the value of the company’s shares to fall,
• as a sign that the company has become the focus of hedge funds,
• as a possible harbinger of fundamental problems in the company’s business model or finances,
• as a result of technical analysis or short-term expectations of a price correction.

It is worth emphasizing that not every presence in the register necessarily means that the company is in trouble. Sometimes it can be an element of hedging against risk or part of a larger investment strategy.

Although it is not always a bad thing to be listed in the short selling register, sometimes it can signal, for example:

• expected fundamental problems of the company,
• high valuations and potential correction,
• reactions to market or industry events.

Worth a read: https://parkietfinansowy.pl/analiza-fundamentalna-spolki/

Is short selling always a bad thing?

Short selling is a natural element of a well-functioning capital market. It allows investors to express negative expectations towards companies, which in turn supports effective asset valuation. It also acts as a mechanism for balancing demand and supply forces.

Short selling increases liquidity, limits the creation of speculative bubbles, and enables hedging strategies, especially among institutional investors. Thanks to it, portfolio risk can be effectively managed.

However, in excess, especially when many institutions simultaneously take positions on the same company, it can lead to excessive supply pressure, sharp price drops, and loss of confidence among individual investors. In extreme cases, it can also affect market stability.

How can investors use the short selling register?

The short selling register can be a valuable source of information for investors looking for an analytical edge. Regular analysis of it allows not only for risk assessment but also for identifying potential investment opportunities.

Here are some practical applications:

Warning signal
 If a company suddenly appears on the register, it is worth taking a look at its financial situation, periodic reports, and current announcements. This may be a signal to limit exposure or analyze investment risk in more detail.

Sentiment verification
 A high share of short positions may indicate negative market sentiment. Such information can be helpful when making technical decisions (e.g., avoiding buying in a downtrend) or assessing sentiment around the industry in which the company operates.

Searching for opportunities
 Paradoxically, large short positions can indicate an overly pessimistic market attitude. If the company’s fundamentals are solid and the price does not confirm weakness, a so-called short squeeze may occur. It involves a dynamic increase in the price when investors close short positions in a hurry.

Investors can also keep their own statistics based on data from the register — for example, analyze the frequency of appearance of specific funds, the length of holding a position, or the reaction of the price to the appearance of new short positions. In some cases, mass short selling leads to the so-called short squeeze. This can be an opportunity for dynamic price increases.

Examples of situations when it is worth analyzing the short selling register

• Before the announcement of companies’ financial results — large short positions can suggest that the market is expecting negative results or unexpected information.
• After sudden price drops without an obvious cause — the company’s presence in the register can explain supply pressure.
• During periods of increased volatility — data from the register helps to understand whether volatility is due to the activities of institutions taking short positions.
• In the case of rumors or negative PR around the company — if unofficial information has appeared, it is worth checking whether funds are also acting in this direction.
• When analyzing a fundamental portfolio — the register can help to identify companies that are perceived by the market as risky and adjust investment exposure accordingly.
• During announcements of important information (e.g., change of management, calls for the sale of shares, regulator’s decisions) — activity in the register can suggest how a given event was assessed by large players.

How to interpret changes in the register?

Changes in the short selling register provide valuable information about the current sentiment and strategies of institutional investors. Their correct interpretation can help in forecasting market behavior.

• Growing number of short positions: This may mean that more and more investors are expecting a decline in the price of a given company. This can be a warning signal and an incentive to analyze the fundamental situation and current events surrounding the company.
• Growing level of existing positions: If one institution increases the share of its short position, this may indicate a growing conviction about the negative prospects of the company.
• Quick closing of positions: This may mean that the expected sell-off has already happened or that investors are no longer confident in their forecasts. In some cases, it may also herald a short squeeze — a sharp increase in share prices.
• Repeated names of institutions: If the same funds regularly appear in the register, this may indicate their specialization in short selling strategies. Observing their activities may provide additional clues.
• No new positions despite price declines: This may indicate that the sell-off is not due to hedge fund activity but to other factors — such as poor financial results or panic among individual investors.

Regular analysis of these changes, in combination with other tools, can help you spot turning points on the charts and manage your risk better.

What are the limitations of the short selling register?

• It only shows large positions: Only those positions that exceed the threshold of 0.5% of the company’s capitalization are visible in the register. Smaller investors and short positions with a lower share remain invisible, which may distort the full market picture.
• Lagged data: The register is updated with a one-day delay. In dynamic market situations, this may limit its usefulness for investors making quick decisions.
• Lack of information about the investor’s motivation: The register does not contain information on whether a given position is opened for speculative, hedging, or arbitrage purposes. This makes it difficult to interpret the intentions of market participants.
• No history of position changes: Only current data is available. To analyze trends over time, investors must independently archive data and create their own databases.
• Lack of information on position closure: Although the reporting obligation also covers position closure, the register does not always clearly indicate when a given position was extinguished.
• Limited number of companies: In practice, the register is dominated by companies with large capitalization, which makes this tool less useful when analyzing small and medium-sized companies, especially from the NewConnect market.

Short selling register and other analytical tools

The short selling register is particularly valuable when it complements other analysis methods. It does not provide a full picture of the market situation on its own, but it can significantly increase the accuracy of assessments and forecasts.

The register should be combined with other methods such as:

• Technical analysis: Signals from charts (formations, volume, indicators) are confirmed or weakened by data from the register.
• Fundamental analysis: If a company has good results and, despite this, the number of short positions is growing, this may be a signal to analyze its market environment in more detail.
• Company reports: Publications of results, current announcements, and management strategy should be compared with the activity of funds in the register.
• Data from NewConnect: Although the register less often includes smaller companies, it is worth observing whether short positions are concentrated around specific market segments.
• ESPI/EBI reports: Announcements about changes in ownership, calls to sell shares, or strategic decisions may influence decisions to open short positions.

Combining these sources of information allows for a more complete picture of the market situation and increases the effectiveness of investment decisions.

Worth a read: link

Is it worth monitoring the register regularly?

Regularly analyzing the register can help avoid losses and better manage risk. By observing changes in short positions daily, investors gain a broader picture of market sentiment and can catch early warning signals.

Monitoring the register:

• enables quick response to emerging risks
• helps understand the dynamics of changes in company valuations
• enables identification of potential short squeezes
• enables adjustment of portfolio strategy to current market conditions
• increases awareness of the activities of large players who often have access to broader analyses

The KNF short selling register is a valuable and underrated tool in the investor’s arsenal. It allows tracking the activities of professional market participants and provides important information about investment sentiment around specific companies. It can serve as a warning signal, a hint for deeper fundamental analysis, or an opportunity to identify potential short squeezes.

Regular monitoring of the register allows for better risk management, avoidance of market traps, and more accurate forecasting of possible scenarios. However, it is important to remember that the register itself should not be the sole basis for investment decisions — it works best as a complement to other analysis methods.

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