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Short-selling investors who bet on a fall in a UK company’s share price will not be made public as part of the offers. City Monitoring for changing disclosure rules.
The Financial Conduct Authority (FCA) is consulting on plans to change the rules that currently require disclosure of the identity of so-called short-sellers.
In a move to bring British rules in line with US ones, the regulator plans to anonymize disclosures of short positions, with amounts only reported on a combined total.
FCA It is also proposed to increase the reporting limit to 0.2% of the share capital of the company, which is currently 0.1%.
It said the move would “support growth by removing unnecessary barriers that could impede or discourage short selling”, adding that it could “play an important role by supporting value creation, providing liquidity and facilitating risk management”.
The FCA said the new rules would still ensure “adequate visibility and control over short selling to manage any risks to support orderly and effective financial markets”.
obeys the orders of Government Regulators were told earlier this year to help cut red tape and support economic growth, while the UK also no longer has to comply European Union Rules on Short-Selling Position Disclosure.
But there are concerns the weakening of regulations and lower levels of transparency in the sector could make it easier for hedge funds to manipulate markets to boost returns.
Simon Walls, executive director of markets at the FCA, said: “These proposed changes are another important milestone in our drive to be a smarter regulator and support growth.
“Simplified procedures for aggregate net short positions and reporting will enhance and streamline the short-selling regime in the UK, reducing the burden for capital markets participants while ensuring the market still receives the transparency it needs.”
The consultation is open for seven weeks, ending on December 16, with the aim of implementing final rules in the second half of 2026.