MFA issued the following statement in support of the announcement that the UK Financial Conduct Authority (FCA) is launching a consultation on short sale regulatory reforms:

“The alternative asset management industry commends the FCA for launching this critical step toward modernising the UK short selling regime. Smart reforms will enhance UK financial markets, attract investment, and support economic growth. We look forward to working with the FCA throughout this consultation to ensure the final short sale framework reinforces the UK’s standing as a leading global financial centre. We will continue to pursue similar enhancements to the EU’s short sale framework.” — Rob Hailey, MFA Head of EMEA Government Affairs 

Source: MFA

FCA seeks views on new short selling regime

Short selling can play an important role by supporting price formation, providing liquidity, and facilitating risk management.

Our consultation aims to support growth by removing unnecessary barriers which might inhibit or discourage short selling while retaining sufficient visibility and controls over short selling to manage any risks to support orderly and effective financial markets.

Together with the government’s legislative framework set out in January 2025, our proposals include:

• Aggregated net short position disclosures: a new model will combine, anonymise, and disclose, all the individual positions reported above the 0.2% reporting threshold.
• Position reporting: extend the deadline for firms submitting position reports by reducing the time required for the regulator to process and provide guidance on how firms determine the issued share capital of companies to calculate their positions.
• Market maker notifications: streamline and automate our systems for receiving position reporting and market maker exemption notifications to make submissions easier, quicker and less burdensome.

Simon Walls, executive director of markets at the FCA, said:

‘These proposed changes are another important milestone in our drive to become a smarter regulator and to support growth.

‘Aggregated net short positions and simplified processes for reporting will enhance and streamline the short selling regime in the UK, reducing burdens for capital market participants while ensuring the market still gets the transparency it needs.’

Sourc: FCA