The FSA is proposing to extend its current disclosure regime for the short selling of UK financial st...
The FSA is proposing to extend its current disclosure regime for the short selling of UK financial stocks as it continues to draw up longer-term rules.
Current regulations, unveiled in January, dictate disclosures will only 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 (0.35%, 0.45% etc...).
The regime is due to expire on 30 June and the FSA has not made clear how long a further extension would be.
It initially banned the short-selling of UK bank and insurance stocks in September last year following concerns of market abuse but, following a short consultation in January, allowed the ban to expire and extended the disclosure obligation.
The FSA says it expects to introduce, in the longer term, a broader short selling regime for all UK stocks.
"Keeping the disclosure requirements will continue to enhance transparency and limit the potential for market abuse," FSA managing director of wholesale and markets Sally Dewar says.
"We remain committed to achieving an international consensus that is as wide as possible on our broader short selling regime."
The consultation period on the latest proposals will close on 12 June.
