FSA will not restrict short selling but wants greater transparency
THE Financial Services Authority (FSA)is to pursue “enhanced transparency” of short-selling in response to feedback it has received from the City.
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.
Alexander Justham, FSA director of markets, said: “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.”
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’s share capital.