UK short selling disclosure regime extended

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.