UK's FSA Proposes a 'Permanent' Extention of the Disclosure Rules for all Short-Sellers


On 6th February 2009, the UK’s Financial Services Authority (FSA) published a discussion paper inviting market participants to contribute to the development of a long term short-selling regime in the UK.1

As we reported in our previous client alerts, in response to the global banking crisis and exceptional price volatility in UK bank shares, FSA has introduced, over the past eight months, two parallel sets of emergency rules to restrict short-selling in UK-listed companies:

1. On 13th June 2008, FSA introduced new rules requiring disclosures of short positions in UK-listed companies (financial sector or otherwise) undertaking rights issues where they reach or exceed 0.25% of the issued share capital of the relevant company;2 and

2. On 18th September 2008, FSA introduced further rules relating to UK-listed financial sector companies, consisting of (i) a temporary ban on any short-selling of such stocks and (ii) obligations to disclose short positions reaching or exceeding 0.25% of the issued share capital of the relevant company as well as subsequent changes to such position.3

Please see full bulletin for more information.

LOADING PDF: If there are any problems, click here to download the file.

Written by:


Morrison & Foerster LLP on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.