FSA lifts short-selling ban but disclosure rules stay
Daily news headlines
UK regulator ends its ban on short selling but keeps disclosure rules on shorting positions
LONDON - The UK ban on short selling for 34 companies will expire on January 16, according to the UK Financial Services Authority (FSA). The regulator will extend its rules forcing short sellers to disclose their positions until June 30.
The ban against short selling - investors aiming to profit by selling shares lent for a fee in the hope of subsequently buying them back cheaper - was introduced in September after the collapse of Lehman Brothers and a dive in share prices on a number of UK banks, most notably HBOS.
"We will not hesitate to reinstate the ban if necessary," says Sally Dewar, managing director of wholesale and institutional markets at the FSA. "We believe these proposals are the right measures for maintaining orderly markets."
The FSA has resisted political pressure to extend the ban, including comments by chairman of the Treasury select committee John McFall and Liberal Democrat Treasury spokesman Vince Cable. However, the Association of British Insurers (ABI), whose members represent around 15% of the UK stock market, welcomed the FSA's decision to extend the short-selling disclosure regime.
The regulator plans to publish a consultation paper within the next month, outlining its proposals for a long-term short-selling regime.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
More on Regulation
Banks will not be frowned upon for discount window borrowing – Fed official
Risk Live: more banks have completed paperwork to access Fed lending facility than a year ago
Capital One puts OCC’s tough stance on mergers to the test
Proposed Discover deal should be approved but will go under the microscope, ex-regulators say
As FCMs dwindle, regulators fear systemic risk
Panellists highlight dangers of clearing membership becoming more concentrated
EU banks fear green asset ratios paint an unfair picture
Industry lobbyist clashes with lawmaker over usefulness of new sustainability disclosure
EU watchdogs to launch prop trader capital review in April
Prop traders say bank-style IFR rules are driving them out, but doubt EBA will suggest changes
Investors say new SEC disclosures may sit on shelf
Advisory committee questions value of rule 605 changes, even for retail investors
CFTC hears ‘call to action’ from swaps end-users on Basel III
Commissioner Pham mulls engaging with prudential regulators over capital hit on clearing
Iosco gears up for ‘intensive work’ on AI regulation
Watchdogs risk ‘falling behind the curve’, secretary-general warns; FSB also working on guidance
Most read
- As FCMs dwindle, regulators fear systemic risk
- Top 10 operational risks for 2024
- Top 10 op risks: AI fears drive cyber risk to record high