UK's FCA streamlines short selling reporting and market‑maker notifications
Compliance teams at UK investment firms get longer short‑position reporting windows
Change
UK's FCA implemented a revised short selling regime that publishes aggregated net short positions by company (not individual short sellers), extends timelines for firms to calculate and submit short position reports, and replaces frequent market‑maker exemption notifications with a single annual confirmation.
Why it matters
Outside parties will no longer be able to identify individual short sellers from FCA data, reducing external transparency into concentrated short positions. Eligible market makers must support an annual exemption confirmation and retain records to prove entitlement, shifting the compliance burden from frequent notifications to periodic certification while the FCA keeps emergency intervention powers.
Implications
- — Compliance teams at UK investment firms — must reconfigure reporting schedules and submission procedures immediately to match the FCA's extended calculation and filing windows — failure to file correctly under the new timetable exposes the firm to FCA enforcement action.
- — Risk managers and trading desks at UK investment firms — must stop relying on public FCA disclosures to identify individual short counterparties and immediately implement internal counterparty monitoring and concentration checks — failing to close this information gap risks unrecognised counterparty exposures and trading losses.
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Source
FCA
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