- FSA Extends Short-Sale Disclosure Requirements
- June 25, 2009
- Law Firm: Alston & Bird LLP - Atlanta Office
The policy, which was first introduced September 2008 and extended in an amended form on January 16, 2009, requires disclosure if a net short position exceeds 0.25% of a company’s issued shared capital or increases by 0.1% bands above that. The disclosure requirements were set to expire on June 30, 2009. Unlike the previous extension of the short-selling disclosure requirements, the FSA declined to provide a new expiration date for the rules. Meanwhile, the FSA continues to consider permanent short-selling rules, with their analysis due to be released in the third quarter.
In extending the policy, Sally Dewar, managing director of wholesale and markets at the FSA, said that “the disclosure requirements will continue to enhance transparency and limit the potential for market abuse, while details of a long term regime for short selling are being drawn up.”