The Financial Conduct Authority has published consultation paper CP25/29 proposing rules, guidance and a draft statement of policy to implement the Short Selling Regulations 2025 and move the UK short selling regime into the FCA Handbook. The package would create a new Short Selling Sourcebook and operationalise the shift from named disclosures to anonymised, aggregate net short position disclosure, while largely retaining the existing framework with targeted changes intended to reduce disproportionate burdens. The proposals keep the 0.2% net short position reporting threshold but extend the reporting deadline to 23:59 on the next working day (from 15:30 on the next trading day), add guidance on issued share capital sources, clarify aspects of group reporting, and amend ETF and UCITS calculation guidance. Covering requirements would be consolidated and supplemented with a rule to retain evidence of covering arrangements for at least five years, plus minor clarifications for subscription rights and for what an “easy-to-borrow or purchase list” must include. A new “reportable shares list” would identify admitted shares in scope for reporting and covering, using a revised principal-country methodology based on aggregated trading volume and new “significant importance to the UK market” criteria, with full updates every two years on 1 April and monthly updates. On transparency, the FCA proposes guidance for calculating and publishing aggregate net short positions per issuer (built from outstanding notified positions above 0.2%) from 12:00 on T+2, with late or unverified notifications excluded until validated. Market maker exemption processes would be streamlined through a 15-day notice for first-time users and immediate effectiveness for existing exempt market makers adding instruments, alongside transitional arrangements for legacy exemptions until 1 June 2027. Responses are requested by 16 December 2025, and the FCA plans an industry event on 6 November 2025 focused on operational changes. Implementation is proposed in two phases, with systems for aggregate disclosures and the reportable shares list live on the main commencement day alongside the new Sourcebook, followed six months later by upgraded systems for position reporting and market maker exemption notifications; the FCA also plans to publish its policy statement and a draft reportable shares list two months ahead of the main commencement day.
Financial Conduct Authority 2025-10-28
United Kingdom's Financial Conduct Authority launches consultation on new Short Selling Sourcebook and anonymised aggregate short position disclosures
The Financial Conduct Authority (FCA) has issued consultation paper CP25/29 to integrate the Short Selling Regulations 2025 into the FCA Handbook, introducing a new Short Selling Sourcebook. Key proposals include anonymised, aggregate net short position disclosures, extended reporting deadlines, and revised guidance on share capital sources and group reporting. The FCA plans to streamline market maker exemption processes and implement changes in two phases, with systems for aggregate disclosures and the reportable shares list launching on the main commencement day.