FCA seeks views on new short selling regime
28 October 2025 UK
Image: IWei/stock.adobe.com
The UK Financial Conduct Authority (FCA) is seeking feedback on proposals for a new short selling regime.
The consultation aims to create a more efficient, effective, and coherent short selling regime that retains sufficient visibility and controls over short selling activity to manage any risks and maintain the orderly and effective functioning of UK markets, while removing any disproportionate costs.
According to the FCA, these intentions support their market integrity objective while bolstering the competitiveness of UK financial markets and contributing to the UK鈥檚 wider economic growth.
Alongside the legislative framework detailed by the government, examples of the FCA鈥檚 proposals include: aggregated net short position disclosures, position reporting, and market maker proposals.
Simon Walls, executive director of markets at the FCA, states: 鈥淭hese proposed changes are another important milestone in our drive to become a smarter regulator and to support growth.
鈥淎ggregated net short positions and simplified processes for reporting will enhance and streamline the short selling regime in the UK, reducing burdens for capital market participants while ensuring the market still gets the transparency it needs.鈥
The consultation aims to create a more efficient, effective, and coherent short selling regime that retains sufficient visibility and controls over short selling activity to manage any risks and maintain the orderly and effective functioning of UK markets, while removing any disproportionate costs.
According to the FCA, these intentions support their market integrity objective while bolstering the competitiveness of UK financial markets and contributing to the UK鈥檚 wider economic growth.
Alongside the legislative framework detailed by the government, examples of the FCA鈥檚 proposals include: aggregated net short position disclosures, position reporting, and market maker proposals.
Simon Walls, executive director of markets at the FCA, states: 鈥淭hese proposed changes are another important milestone in our drive to become a smarter regulator and to support growth.
鈥淎ggregated net short positions and simplified processes for reporting will enhance and streamline the short selling regime in the UK, reducing burdens for capital market participants while ensuring the market still gets the transparency it needs.鈥
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