UK - The Financial Services Authority (FSA) is set to end its ban on the short selling of stocks of UK financial sector companies.
The FSA said it would extend its temporary disclosure regime until 30 June in order to "reduce the potential for abusive behaviour and disorderly markets" - but proposed to make one change to the regime.
Currently a disclosure must be made if a net short position exceeds 0.25% of a relevant firm's issued shared capital, with further disclosures required if there are any changes in the position.
Under the FSA's proposals further disclosures would only be required at 0.1% bands - as a net short position reached 0.35%, 0.45% and so on.
FSA managing director of wholesale and institutional markets Sally Dewar said: "We believe that these proposals are the right measures for maintaining orderly markets.
"Continuing the disclosure obligations as we propose will reduce the potential for abusive behaviour and disorderly markets. In addition, we will not hesitate to reinstate the ban if necessary."
The consultation on the proposed changes will close on 9 January to enable the new measures to be in place at the expiry of the existing ones on 16 January.
The FSA said it intends to publish a separate consultation paper within a month, setting out its proposals for the longer-term short selling regime.
Partner Insight: In recent years, pensions administrators have seen scheme member engagement increase significantly. The advent of Pensions Freedoms in 2015 and the increased choices faced by members have led to a sea-change in the levels and types of...
Two consultancies have reported decreases in defined benefit (DB) transfer quotation requests in Q3, and said guaranteed minimum pension (GMP) equalisation could impact transfer activity.
The Association of Consulting Actuaries (ACA) and Royal London have proposed a "pensions pound" to "radically simplify" defined benefit (DB) pensions rights.
Around 5,000 members of the Johnston Press Pension Plan are expected to enter the Pension Protection Fund (PPF) following a pre-pack administration (PPA) by its sponsor.