views

FSA will not restrict short selling but wants greater transparency

THE Financial Services Authority (FSA)is to pursue &ldquo;enhanced transparency&rdquo; of short-selling in response to feedback it has received from the City.<br /><br />The regulator said it would work towards an international agreement to disclose significant short positions in all equities, rather than a stand-alone domestic regime.<br /><br />Alexander Justham, FSA director of markets, said: &ldquo;The consultation exercise has confirmed our support for enhanced disclosure requirements... rather than any direct restrictions on short selling, other than on a temporary basis in exceptional conditions.&rdquo;<br /><br />The watchdog also said it would consider proposals laid out by the Committee of European Securities Regulators for private disclosure of positions above 0.1 per cent of the shorted firm&rsquo;s share capital.