Disclosure regime for short selling extended by the UK regulatorLONDON - The Financial Services Authority (FSA) has extended, without a time limit, the current disclosure regime for significant net short positions in the stocks of UK financial sector companies, which is currently due to expire on June 30.
Extending the regime will continue to help reduce the potential for abusive behaviour and disorderly markets, the FSA says. While no expiry date has been set, the FSA does not intend to keep the regime permanently. The FSA is currently analysing responses to its discussion paper (DP 09/1) on the options for a future short-selling disclosure regime for all UK stocks and remains committed to getting the widest possible international consensus on how the regime would work.
As is the case at present, disclosures will need to be made if a net short position exceeds 0.25% of a company's issued shared capital or increases by 0.1% bands above that (eg, net short position reaches 0.35%. 0.45% and so on).
The extension follows a 10-day consultation launched on June 1.
The policy statement can be read here.
More on Risk Management
Weird or pragmatic: VAR-based back-tests for expected shortfall
Volume 17, Issue 1, 2014
To meet new Basel III capital requirements, banks have to proxy unobserved credit default swap (CDS) time series for their over-the-counter derivative counterparties to determine the credit valuation adjustment...
Accurate rating systems are of central importance for banks to price and manage their loan portfolios. A bank's choice to invest in a more accurate rating technology is based on a trade-off: the better...
Sign up for Risk.net email alerts
Sponsored webinar: IBM
Watch highlights of this year's London conference
Operational risk and the challenges of defining and dealing with conduct risk
Watch discussions and speakers from our North America conference
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.