The UK’s HM Treasury has put out a call for evidence as it seeks views on how the government should reform the regulation of the practice of short selling as part of the government’s program to repeal and replace retained EU law in financial services. The Short Selling Regulation regulates the short selling of shares listed on UK market and includes provisions on disclosure to the Financial Conduct Authority (FCA) and the public, a ban on naked short selling, and emergency powers for the FCA.
This regulation was introduced by the European Union (EU) and was brought onto the UK statute book following the UK’s exit from the EU. In implementing the outcomes of the Future Regulatory Framework review (FRF) the government will repeal this regulation and replace it with a regulatory regime tailored to UK markets, with the aim of “supporting market integrity and bolstering the competitiveness of UK financial markets”.