On 3 March 2009, the FSA published Policy Statement 09/3: Disclosure of Contracts for Difference - Feedback on CP08/17 and final rules (PS09/3).
In general the FSA opted to implement a new general disclosure regime of long contracts for difference (CfDs) positions as described in Consultation Paper 08/17: Disclosure of Contracts for Difference: Feedback and policy statement on CP07/20 (CP08/17). However, there were two specific areas where the FSA had changed its approach and these were:
- In relation to the basis on which disclosures should be calculated (nominal or on a delta-adjusted basis) the FSA decided that disclosures should be made on a delta adjusted basis, as this is a more accurate reflection of the actual exposure. To allow firms time to adapt to this requirement the FSA will allow reporting on either a nominal or delta-adjusted basis for a transitional period of seven months from implementation. When firms report on a nominal basis during the transitional period the FSA will require additional information to that already disclosed under the DTRs so that market participants may calculate the underlying exposure more accurately.
- The FSA stated in CP08/17 that its intention was to bring the new rules into force in September 2009. In light of the changes in market conditions since last summer and the need for increased transparency, the FSA has decided to bring forward the implementation timetable. The new disclosure regime for CfDs will now take effect from 1 June 2009.