The UK’s finance ministry has issued a consultation paper with proposals on the sovereign debt and credit default swaps (CDS) aspects of the UK Short Selling Regulation. It will next publish a draft Statutory Instrument with the legislative framework underpinning UK SSR amendments (for equities, sovereign debt and sovereign CDS) by the end of this year. The final Statutory Instrument will be laid in 2024.
Alternative Investment Management Association (AIMA) CEO Jack Inglis said in a statement: “The latest proposals to improve UK short selling rules relating to sovereign debt and CDS are necessary and will level the UK’s rules with those of other jurisdictions, supporting greater investment into the UK.
“Together with HM Treasury’s decision to replace the current public disclosure regime based on individual net short positions with an aggregated net short position disclosure regime and to increase the current disclosure threshold for net short position reporting to the Financial Conduct Authority from 0.1% to 0.2%, we welcome recent steps to create a regulatory regime for short selling that is tailored to the UK, supports market integrity and drives growth and competitiveness in the financial sector.”