FSA has published its plans:  

  • to extend the short selling disclosure regime until the end of June: the regime will continue to apply only to UK financial sector stocks and FSA plans one change. This change would require notification of changes in positions that exceed 0.25% of a relevant firm's issued share capital only at 0.1% bands over the 0.25% (rather than on each increase or decrease);
  • to end the ban on short selling of UK financial sector stocks on 16 January. However, FSA warns it would if necessary reintroduce the ban, maybe without consultation.  

FSA wants comments urgently by 9 January so it can have the new rules in place on 16 January. It will consult within a month on its plans for the longer-term short selling regime. See also our FReDFlash of 6 January.