FCA Clarifies Post-Brexit Net Short Position Notifications
The Financial Conduct Authority (FCA) has clarified the process for net short position notifications post-Brexit. While the method of submission remains unchanged, the destination and threshold levels have evolved.
Until 31 December 2020, the EU Short Selling Regulation (EU SSR) applied in the UK, with notifications sent to the FCA. From 1 January 2021, the UK Short Selling Regulation (UK SSR) took over, and notifications should continue to be sent to the FCA when required.
The lower reporting threshold has been extended, currently applying until 19 March 2021. Initially lowered in March 2020 by the European Securities and Markets Authority (ESMA) from 0.2% to 0.1% in response to the COVID-19 pandemic, this change has been maintained by ESMA until the same date. Notably, the UK will further lower its notification threshold to 0.1% starting 1 February 2021 under the UK SSR. This change does not impact other requirements under the EU SSR or UK SSR.
In summary, the process of submitting net short position notifications to the FCA remains unchanged, with the destination and threshold levels adapting to the UK's exit from the EU. The lower reporting threshold has been extended and will be further reduced in the UK, all without affecting other regulatory requirements.
