The FCA has launched a consultation to encourage short selling by proposing firms aggregate their net short positions for reporting purposes.
The streamlined short selling regime will sit alongside the government’s legislative framework on short selling, announced in January 2025, and will propose:
- Combining and disclosing all anonymous individual positions above the 0.2% reporting threshold
- Extending 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
- Automating the FCA’s systems for receiving position reporting and market maker exemption notifications to make submissions 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.”
