Following the Treasury’s Short Selling Regulation Review: Call for Evidence and its Response the UK Government has published a draft statutory instrument (SI) alongside an explanatory policy note. This draft SI and the policy note set out how the Government currently intends to change the regulatory regime for short selling in the UK, but do not set out all of the elements of this new proposed regime.
In broad terms, the draft SI sets out the scope of the proposed new UK short selling regime and provides the FCA with a range of related rulemaking powers to specify firm-facing short selling requirements in the FCA handbook.
It also includes emergency intervention powers for the FCA to require additional short selling-related information and to restrict short selling in exceptional circumstances where there is a serious threat to financial stability or market confidence,…
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