FCA simplifies short selling reporting rules
Short sellers and market makers must apply revised FCA reporting and annual-confirmation rules
Change
The FCA finalised simpler UK short selling rules that extend reporting timelines, move public disclosure to aggregated net short-position data and replace repeated market-maker exemption notifications with annual confirmations.
Why it matters
The new regime changes the compliance workflow for short-position reporting and market-maker exemptions. Firms must update reporting calendars, calculation processes, public-disclosure assumptions and exemption-notification controls while preserving readiness for FCA intervention in exceptional market conditions.
Implications
- — Firms reporting net short positions must update calculation and submission workflows to use the revised FCA reporting timetable.
- — Market makers relying on exemptions must replace repeated exemption notifications with the FCA's annual confirmation process.
- — Compliance and regulatory-reporting teams must adjust disclosure controls because the FCA will publish aggregated company-level net short-position data rather than identifying individual short sellers.
- — Trading and risk teams must preserve escalation procedures for exceptional market conditions because the FCA's emergency short selling intervention powers remain unchanged.
Who is affected
- — Firms reporting net short positions in UK securities
- — Market makers relying on short selling exemptions
- — Compliance and regulatory-reporting teams at investment firms
- — Trading and risk teams managing short-position exposure
What to watch
- — FCA policy statement, rules and operational guidance
- — Reporting change: extra time to calculate and submit short-position reports
- — Disclosure change: aggregated net short-position data by company
- — Market-maker process: annual confirmation replacing repeated exemption notifications
- — FCA emergency powers remain available in exceptional market conditions