The Managed Funds Association (MFA) has issued a statement in support of the UK Financial Conduct Authority’s (FCA) announcement to launch a consultation on reforms to the short sale regulatory framework.
The alternative asset management industry commends the FCA for taking this critical step toward modernising the UK’s short selling regime. Smart reforms will enhance UK financial markets, attract investment, and support economic growth.
“We look forward to working with the FCA throughout this consultation to ensure the final short sale framework reinforces the UK’s standing as a leading global financial centre,” the MFA stated. They also emphasized their commitment to pursuing similar enhancements within the EU’s short sale framework.
The consultation aims to support market growth by removing unnecessary barriers that may inhibit or discourage short selling, while maintaining sufficient visibility and controls to manage risks and support orderly, effective financial markets.
Alongside the government’s legislative framework outlined in January 2025, the FCA’s proposals include:
– **Aggregated Net Short Position Disclosures:** Introducing a new model that will combine, anonymise, and disclose all individual positions reported above the 0.2% reporting threshold.
– **Position Reporting:** Extending the deadline for firms to submit position reports by reducing the time the regulator needs to process them, alongside providing guidance on how firms should determine the issued share capital of companies to calculate their positions.
– **Market Maker Notifications:** Streamlining and automating systems for receiving position reporting and market maker exemption notifications to make submissions easier, quicker, and less burdensome.
Simon Walls, Executive Director of Markets at the FCA, said:
“These proposed changes are another important milestone in our drive to become a smarter regulator and to support growth. Aggregated net short positions and simplified processes for reporting will enhance and streamline the short selling regime in the UK, reducing burdens for capital market participants while ensuring the market still gets the transparency it needs.”
**Source:** FCA
https://www.marketsmedia.com/mfa-supports-fca-consultation-on-short-selling-reform/
