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pc nid 91979 Apr 16, 2026 csoo@vixio.com United Kingdom Financial Conduct Authority horizon scanning
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United Kingdom's Financial Conduct Authority Introduces Simplified Short Selling Reporting Rules

On April 16, 2026, the Financial Conduct Authority (FCA) finalised a revised short selling regime that streamlines reporting requirements for firms while maintaining regulatory oversight of the market. The new rules implement legislative changes under the government's repeal and replace programme. Under the revised framework, the FCA will publish aggregated data showing the overall net short positions in each company rather than identifying individual short sellers. The regime introduces a more proportionate approach to short selling oversight, recognising that short selling supports price formation, provides liquidity, and facilitates risk management in financial markets. Key changes include an extended reporting timetable that provides firms with additional time to calculate and submit short position reports, reducing administrative burden. For market makers, the rules have been simplified significantly, allowing eligible firms to submit annual confirmations regarding exemptions rather than making frequent individual notifications to the FCA. This reduces administrative effort while retaining necessary regulatory oversight. Jon Relleen, FCA director of infrastructure and exchanges, stated: "These changes give firms clearer rules and cut administrative burdens, while ensuring we have the information we need to keep the market fair. It is smarter regulation in action." The FCA's powers to intervene in exceptional market conditions, including through emergency measures, remain unchanged. The regulator maintains a high threshold for deploying emergency powers, reserving their use for exceptional circumstances only. **Reference:** Financial Conduct Authority. (2026, April 16). The FCA introduces clearer and simpler short selling rules. Retrieved from FCA website.

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United Kingdom's Financial Conduct Authority Introduces Simplified Short Selling Reporting Rules

On April 16, 2026, the Financial Conduct Authority (FCA) finalised a revised short selling regime that streamlines reporting requirements for firms while maintaining regulatory oversight of the market. The new rules implement legislative changes under the government's repeal and replace programme. Under the revised framework, the FCA will publish aggregated data showing the overall net short positions in each company rather than identifying individual short sellers. The regime introduces a more proportionate approach to short selling oversight, recognising that short selling supports price formation, provides liquidity, and facilitates risk management in financial markets. Key changes include an extended reporting timetable that provides firms with additional time to calculate and submit short position reports, reducing administrative burden. For market makers, the rules have been simplified significantly, allowing eligible firms to submit annual confirmations regarding exemptions rather than making frequent individual notifications to the FCA. This reduces administrative effort while retaining necessary regulatory oversight. Jon Relleen, FCA director of infrastructure and exchanges, stated: "These changes give firms clearer rules and cut administrative burdens, while ensuring we have the information we need to keep the market fair. It is smarter regulation in action." The FCA's powers to intervene in exceptional market conditions, including through emergency measures, remain unchanged. The regulator maintains a high threshold for deploying emergency powers, reserving their use for exceptional circumstances only. **Reference:** Financial Conduct Authority. (2026, April 16). The FCA introduces clearer and simpler short selling rules. Retrieved from FCA website.