The UK’s Financial Conduct Authority (FCA) is seeking comments on proposals for a new short selling regime.
The consultation aims to support growth by removing unnecessary barriers that may impede or discourage short selling, while maintaining sufficient visibility and controls over short selling to manage any risks to support orderly and efficient financial markets.
Along with the Government’s Link is external legislative framework set for January 2025, the FCA’s proposals include:
- Aggregate net negative position disclosures: a new model will combine, anonymize and disclose all individual positions reported above the 0.2% benchmark.
- Position reporting: extending the deadline for companies to file position reports by reducing the time it takes for the regulator to process and provide guidance on how companies determine the issued share capital of companies to calculate their positions.
- Dealer notifications: streamline and automate the FCA’s systems for receiving position reports and dealer exemption notices to make submissions easier, faster and less burdensome.
Comments on the Consultation Paper are accepted until 16 December 2025.