FCA amends notification threshold in short selling regulation
17 January 2024 UK
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The Financial Conduct Authority (FCA) has introduced a new notification threshold for shorted stocks and sovereign debt under Short Selling Regulations (SSR).
Coming into force on 5 February 2024, the legislation will increase the notification threshold for the reporting of net short positions in eligible shares to the FCA from 0.1 per cent to 0.2 per cent of total issued share capital of an issuer.
The decision follows responses from HM Treasury's call for evidence on the regulation.
The Authority has requested that firms make the “necessary changes” to their systems and internal processes to allow them to submit notifications at the higher threshold via the Electronic Submission System (ESS portal).
In terms of the new UK sovereign debt thresholds and uncovered positions in UK sovereign debt credit default swaps, new rules were implemented on 15 January.
According to the FCA, UK sovereign issuers will now need to report 0.50 per cent of the amount of outstanding UK debt in addition to an incremental level of 0.25 per cent.
Certain shares are exempt from the notification and disclosure requirements in the UK SSR, if the principal venue for the trading of the shares is located outside the UK.
Coming into force on 5 February 2024, the legislation will increase the notification threshold for the reporting of net short positions in eligible shares to the FCA from 0.1 per cent to 0.2 per cent of total issued share capital of an issuer.
The decision follows responses from HM Treasury's call for evidence on the regulation.
The Authority has requested that firms make the “necessary changes” to their systems and internal processes to allow them to submit notifications at the higher threshold via the Electronic Submission System (ESS portal).
In terms of the new UK sovereign debt thresholds and uncovered positions in UK sovereign debt credit default swaps, new rules were implemented on 15 January.
According to the FCA, UK sovereign issuers will now need to report 0.50 per cent of the amount of outstanding UK debt in addition to an incremental level of 0.25 per cent.
Certain shares are exempt from the notification and disclosure requirements in the UK SSR, if the principal venue for the trading of the shares is located outside the UK.
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