- UK Short Selling Disclosure Regime Extended
- June 24, 2009 | Authors: Helen Janet Marshall; Christopher Leonard; Roger P. Joseph; Neal E. Sullivan
- Law Firms: Bingham McCutchen (London) LLP - London Office; Bingham McCutchen (London) LLP - Boston Office; Bingham McCutchen (London) LLP - Washington Office
The FSA has announced today that it intends to extend indefinitely its short selling disclosure regime for UK financial companies.
Accordingly the current disclosure regime will not, as originally announced, lapse on 30 June 2009, and it will therefore continue to be the case that, by no later than 3.30 pm (BST) on the day in which a short position in a UK financial sector company reaches, exceeds or falls below 0.25%, 0.35%, 0.45% and 0.55% of the issued share capital of that company and each 0.1% threshold thereafter, the short position must be disclosed to the market via a regulatory information service.
The FSA has confirmed that it does not intend this to be a permanent measure and that it intends to replace it with a more extensive short selling regime once an international consensus on the treatment of short selling is reached.
The FSA’s consultation paper on this proposal can be found at http://www.fsa.gov.uk/pubs/cp/cp09_15.pdf.