FSA has made emergency rules that ban active creation or increase in short positions in publicly quoted UK financial sector companies from midnight on 18 September. The new rules within the COMC at MAR 1.9.2 will have effect until 16 January, though FSA will review them after 30 days. Hector Sants said FSA feels shortselling is legitimate in normal market conditions, but it has had to make these changes to protect the fundamental quality of the markets and guard against more financial instability. There will, however, be an exception to allow market makers to meet demand. FSA will also require, from 23 September, daily disclosure of all net short positions in excess of 0.25 per cent of the ordinary share capital of the relevant companies held at market close on the previous working day. It wants figures from 19 September reported on 23rd also. A few new Glossary definitions accompany the changes, defining UK financial sector companies as UK banks, insurers and their parent undertakings. In January, FSA will report further on short selling. It may also decide to widen the scope of the ban to other sectors.