Clearer and Simpler Short Selling Rules for UK Firms
Summary
The FCA has finalised changes to the UK short selling regime following government legislative changes. The new rules replace the previous approach of identifying individual short sellers with aggregated net short position data published by the FCA. Firms receive a more workable reporting timetable with additional time to calculate and submit reports. Market maker notification requirements are simplified, with eligible firms now providing annual confirmation instead of multiple individual notifications.
What changed
The FCA has finalised a reformed short selling regime implementing the government's repeal and replace programme. The most significant change is the shift from identifying individual short sellers to publishing aggregated data showing total net short positions per company. Reporting timetables are extended, giving firms additional time to calculate and submit short position reports. Market maker exemption notifications are consolidated into a single annual confirmation requirement.
Affected firms, particularly broker-dealers and investment managers engaged in short selling, will benefit from reduced administrative burden while regulatory oversight is maintained through alternative data collection. Market makers should review the simplified notification procedures and transition to the annual confirmation cycle. The FCA's emergency intervention powers remain unchanged.
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Apr 17, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
FCA introduces clearer and simpler short selling rules
Press Releases First published:
16/04/2026
Last updated: 16/04/2026
The FCA has finalised a simpler UK short selling regime that reduces reporting burdens for firms, while maintaining regulatory oversight.
Short selling plays an important role in financial markets by supporting price formation, providing liquidity, and facilitating risk management.
The new rules follow legislative changes under the Government’s repeal and replace programme, which imply that the FCA will publish aggregated data showing the overall size of net short positions in each company rather than identifying individual short sellers.
As well as implementing these changes, the new rules set out how the FCA will oversee short selling in a more proportionate and practical way.
Firms will benefit from a more workable reporting timetable, with extra time to calculate and submit short position reports. In addition, rules for market makers have been simplified allowing eligible firms to make far fewer notifications to us about exemptions, replaced by an annual confirmation. This cuts administrative effort while retaining regulatory oversight.
Jon Relleen, director of infrastructure and exchanges at the FCA, said: 'These changes give firms clearer rules and cut administrative burdens, while ensuring we have the information we need to keep the market fair. It is smarter regulation in action.'
Notes to editors
- Read the Policy Statement, rules and operational guidance.
- The FCA’s powers to intervene in exceptional market conditions, including through emergency measures, remain unchanged. The regulator set a high bar for the use of the emergency powers and only consider using them in exceptional circumstances.
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