Draft regulations offer FCA powers to restrict short selling in 'exceptional circumstances'

Market maker exemptions

James Baxter-Derrington
clock • 2 min read

HM Treasury’s short selling regulations policy note has revealed the Financial Conduct Authority is set to receive powers to intervene in the market in “exceptional circumstances”.

Published alongside today's (22 November) Autumn Statement, the draft regulations would grant the regulator the power to "prohibit or impose conditions" on individuals entering into a short sale of a share or debt instrument, or any other transaction that offers "a financial advantage" in the event of a decrease in the price or value of another instrument. Autumn Statement 23: FCA mulls 'interim solutions' to address investment trust cost disclosure concerns The FCA would also be able to prohibit or restrict short sales in the event of a significant fall in the price of a financial in...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Regulation

FCA has 'near impossible' job to balance growth and consumer protection

FCA has 'near impossible' job to balance growth and consumer protection

Treasury Committee hearing

Sorin Dojan
clock 03 December 2024 • 2 min read
Editor's view: Where are the SDR Improvers and Mixed Goals?

Editor's view: Where are the SDR Improvers and Mixed Goals?

Naming and marketing rules come into force

Cristian Angeloni
clock 02 December 2024 • 7 min read
UK 'losing out' on growth due to excessive FCA regulation

UK 'losing out' on growth due to excessive FCA regulation

UK Crowdfunding Association criticism

Linus Uhlig
clock 02 December 2024 • 3 min read
Trustpilot