UK short selling disclosure regime extended
FSA/PN/084/2009
26 June 2009
The Financial Services Authority (FSA) has today extended, without a time limit, the current disclosure regime for significant net short positions in the stocks of UK financial sector companies due to expire on 30 June.
Extending the regime will continue to help reduce the potential for abusive behaviour and disorderly markets. While no expiry date has been set, the FSA does not intend to keep the regime permanently. The FSA is currently analysing responses to its discussion paper (DP 09/1) on the options for a future short selling disclosure regime for all UK stocks and remains committed to getting the widest possible international consensus on how the regime would work.
As is the case at present, disclosures will need to be made if a net short position exceeds 0.25% of a company’s issued shared capital or increases by 0.1% bands above that (e.g. net short position reaches 0.35%. 0.45% and so on).
The extension follows a 10 day consultation launched on 1 June.
Notes for editors
- The Policy statement PS09/10 is available on the FSA website.
- The FSA regulates the financial services industry and has four objectives under the Financial Services and Markets Act 2000: maintaining market confidence; promoting public understanding of the financial system; securing the appropriate degree of protection for consumers; and fighting financial crime.
- The FSA aims to promote efficient, orderly and fair markets, help retail consumers achieve a fair deal and improve its business capability and effectiveness.