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FCA Publication: Primary Market Bulletin 47

Mar 1, 2024 10:39:21 AM

Update

The 47th edition of the FCA’s Primary Market Bulletin provided an update on recent follow-ups from the consultation process on the UK Short Selling Regulation. 

The government recently published documents outlining its proposals for changing the regulatory regime for short-selling in the UK. The minimum reporting threshold for net short positions in shares changed as of 5 February 2024.

The new UK short-selling regime gives the FCA a range of relevant rule-making powers to specify requirements in the FCA handbook, as well as emergency intervention powers to require additional short-selling-related information, and even to restrict short selling in exceptional circumstances. 

Key elements of the new proposed regime include:

  • Short-selling shares and related instruments is defined as a new designated activity
  • The FCA will have the power to exempt shares from requirements and is required to publish a list of shares to which some of the new rules apply
  • The FCA will be required to publish the net short positions received from short-sellers on an aggregated basis by issuer
  • The FCA will have the power to make rules to exempt market-making activities and stabilisations from certain short-selling requirements.
Following the government’s introduction of the Short Selling (Notification Threshold) Regulations in 2023, the notification threshold for reporting net short positions in shares to the FCA has increased from 0.1% to 0.2% of an issuer’s total issued share capital. 

Following implementation on February 2024, the FCA is now ready to receive notifications via its electronic submission system (ESS) portal.

Link: https://www.fca.org.uk/publications/newsletters/primary-market-bulletin-47