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The Financial Conduct Authority (FCA) is consulting on new rules to regulate short selling activity in the UK based on feedback from HM Treasury's (HMT) Short Selling Regulation: Call for Evidence in 2022.
The FCA will use its powers under the Short Selling Regulations 2025 (SSR 2025) to make these new rules. The SSR 2025 created a new legislative framework for short selling in the UK and, among other things, gave the FCA the power to make rules in place of the current regime. Once brought fully in force, the SSR 2025 will therefore also repeal the post-Brexit assimilated law on short selling, after the FCA's rules have been finalised.
Under the proposals, a new Short Selling Sourcebook in the FCA Handbook will largely replicate the existing regime under the assimilated UK Short Selling Regulation. The key change is that the net short positions of individual position holders (above the 0.2% reporting threshold) will be combined and anonymised – the FCA will publish aggregate net short positions relating to each in-scope company. In addition, a new reportable shares list will be published and maintained by the FCA so that shares within the scope of the new regime are easier to identify.
The FCA's consultation on its new short selling rules closes on 16 December 2025.
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