FCA introduces clearer and simpler short selling rules
16 April 2026 UK
Image: Kittapas/stock.adobe.com
The Financial Conduct Authority (FCA) has finalised a simpler UK short selling regime that reduces reporting burdens for firms, while maintaining regulatory oversight.
According to the authority, the new rules follow legislative changes under the government鈥檚 repeal and replace programme, which imply that the FCA will publish aggregated data showing the overall size of net short positions in each company rather than identifying individual short sellers.
As well as implementing these changes, the new rules set out how the FCA will oversee short selling in a more proportionate and practical way.
Firms will benefit from a more workable reporting timetable, with extra time to calculate and submit short position reports.
In addition, rules for market makers have been simplified allowing eligible firms to make far fewer notifications to us about exemptions, replaced by an annual confirmation, reducing administrative effort while retaining regulatory oversight.
Jon Relleen, director of infrastructure and exchanges at the FCA, states: 鈥淭hese changes give firms clearer rules and cut administrative burdens, while ensuring we have the information we need to keep the market fair.
鈥淚t is smarter regulation in action.鈥�
Also commenting on today's rules announcement, Adam Jacobs-Dean, global head of markets, governance, and innovation at AIMA, the world鈥檚 largest membership association for alternative investment managers, states: "The FCA鈥檚 final rules on short selling are a meaningful step in strengthening the UK鈥檚 competitiveness as a global financial centre.
鈥淏y reducing the visibility of individual short positions, the reforms should improve liquidity and limit the risk of copycat behaviour in the market.
鈥淎IMA has worked closely with the FCA over several years to help shape this outcome, and the process shows how constructive engagement between regulators and industry can deliver better, more workable rules.鈥�
According to the authority, the new rules follow legislative changes under the government鈥檚 repeal and replace programme, which imply that the FCA will publish aggregated data showing the overall size of net short positions in each company rather than identifying individual short sellers.
As well as implementing these changes, the new rules set out how the FCA will oversee short selling in a more proportionate and practical way.
Firms will benefit from a more workable reporting timetable, with extra time to calculate and submit short position reports.
In addition, rules for market makers have been simplified allowing eligible firms to make far fewer notifications to us about exemptions, replaced by an annual confirmation, reducing administrative effort while retaining regulatory oversight.
Jon Relleen, director of infrastructure and exchanges at the FCA, states: 鈥淭hese changes give firms clearer rules and cut administrative burdens, while ensuring we have the information we need to keep the market fair.
鈥淚t is smarter regulation in action.鈥�
Also commenting on today's rules announcement, Adam Jacobs-Dean, global head of markets, governance, and innovation at AIMA, the world鈥檚 largest membership association for alternative investment managers, states: "The FCA鈥檚 final rules on short selling are a meaningful step in strengthening the UK鈥檚 competitiveness as a global financial centre.
鈥淏y reducing the visibility of individual short positions, the reforms should improve liquidity and limit the risk of copycat behaviour in the market.
鈥淎IMA has worked closely with the FCA over several years to help shape this outcome, and the process shows how constructive engagement between regulators and industry can deliver better, more workable rules.鈥�
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