The Alternative Investment Management Association (AIMA) announced significant regulatory changes in the UK that benefit its members and the wider investment industry. Among them are short selling-related changes.
The UK’s finance ministry published the government response to the Short Selling Review which has been a prominent item on AIMA’s advocacy agenda in 2023. The government will replace the current public disclosure regime based on individual net short positions with an aggregated net short position disclosure regime. The government will increase the current threshold for net short position reporting to the Financial Conduct Authority (FCA) from 0.1% to 0.2%.
A parallel consultation will also now open the possibility of scaling back short selling rules so that they no long apply to sovereign debt and CDS.