FCA introduces clearer and simpler short selling rules
16 April 2026 UK
Image: Kittapas/stock.adobe.com
The Financial Conduct Authority (FCA) has finalised a simpler UK short selling regime that reduces reporting burdens for firms, while maintaining regulatory oversight.
According to the authority, the new rules follow legislative changes under the government鈥檚 repeal and replace programme, which imply that the FCA will publish aggregated data showing the overall size of net short positions in each company rather than identifying individual short sellers.
As well as implementing these changes, the new rules set out how the FCA will oversee short selling in a more proportionate and practical way.
Firms will benefit from a more workable reporting timetable, with extra time to calculate and submit short position reports.
In addition, rules for market makers have been simplified allowing eligible firms to make far fewer notifications to us about exemptions, replaced by an annual confirmation, reducing administrative effort while retaining regulatory oversight.
Jon Relleen, director of infrastructure and exchanges at the FCA, states: 鈥淭hese changes give firms clearer rules and cut administrative burdens, while ensuring we have the information we need to keep the market fair.
鈥淚t is smarter regulation in action.鈥�
According to the authority, the new rules follow legislative changes under the government鈥檚 repeal and replace programme, which imply that the FCA will publish aggregated data showing the overall size of net short positions in each company rather than identifying individual short sellers.
As well as implementing these changes, the new rules set out how the FCA will oversee short selling in a more proportionate and practical way.
Firms will benefit from a more workable reporting timetable, with extra time to calculate and submit short position reports.
In addition, rules for market makers have been simplified allowing eligible firms to make far fewer notifications to us about exemptions, replaced by an annual confirmation, reducing administrative effort while retaining regulatory oversight.
Jon Relleen, director of infrastructure and exchanges at the FCA, states: 鈥淭hese changes give firms clearer rules and cut administrative burdens, while ensuring we have the information we need to keep the market fair.
鈥淚t is smarter regulation in action.鈥�
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