Britain's Financial Services Authority announced today that it had completed its review of the short selling measures it announced on September 18, which included prohibitions against the “active creation or increase of net short positions” in a designated list of U.K. financial services companies. When the FSA issued its rules, it committed to review the measures within 30 days of the date the restrictions first became effective (September 23) and that it would publish in January the results of a comprehensive review of rules relating to short selling.
As a result of its review, the FSA has concluded, with one exception, that it should not make any changes to the measures at this time and that the restrictions would remain in place until January 16, 2009. The one change relates to the requirements for disclosing significant net short positions in UK financial sector stocks. The FSA acknowledged that there was little benefit in requiring daily disclosures of short positions where there has been no change in a short position. Consequently, the FSA will amend its rules so that once disclosure of a short position has been made, additional disclosures will only be required when that short position changes. The FSA will officially announce this amendment in coming days.