Citing threats to markets confidence, European regulators are ramping up their monitoring of traders’ short positions.

The European Securities and Markets Authority (ESMA) announced that it has adopted a temporary measure that requires short-sellers to notify regulators if their short position reaches 0.1% of an issued market capital — down from the current 0.2% threshold.

“ESMA considers that the current circumstances constitute a serious threat to market confidence in the [European Union (EU)], and that the proposed measure is appropriate and proportionate to address the current threat level to EU financial markets,” ESMA said in a statement.

The regulator said that it’s adopting a new reporting threshold as a precautionary measure due to “the exceptional circumstances linked to the ongoing Covid-19 pandemic,” which is intensifying the need for the authorities to monitor market developments.

“The measure can support more stringent action if required to ensure the orderly functioning of EU markets, financial stability and investor protection,” ESMA said.

Last week, regulators in Spain, Italy and the U.K. temporarily banned short selling in certain stocks that had suffered large price drops.