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...

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