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The FSA confirmed that it will extend its disclosure obligation for short-selling of stocks in UK financial sector companies until 30 June 2009.
Disclosure of a net short position in the stock of a UK financial sector company will continue to be required once a position reaches 0.25% of a relevant firm’s issued share capital. However, from 16 January 2009, further disclosure will only be required if a short position changes by a further 0.1% of issued share capital (i.e. at 0.35%, 0.45% etc).
The FSA will allow the ban on short-selling stocks in UK financial sector companies to lapse on Friday. These changes will take effect at 00:00:01 on 16 January 2009, permitting short-selling of these stocks on Friday.
The FSA plans to issue a further consultation paper with proposals on longer-term options for a short-selling regime within a few weeks.