RE: Jane Street below threshold24 Apr 2026 21:40
Just to clarify you Banker!
Key Aspects of the New Regime (Effective July 13, 2026):
Anonymity: The FCA will publish "Aggregated Net Short Positions" (ANSPs) for each issuer, concealing the identity of the individual firms or investors.
Thresholds: While public disclosure is now anonymized, the threshold for privately reporting a position to the FCA remains 0.2% of a company's total issued share capital.
Aggregation: The FCA will combine all individual positions reported at or above 0.2% into a single total percentage per company.
Reporting Deadline: Firms will have more time to report, with the deadline extended to 23:59 on T+1 (the working day following the day the position was taken).
Reasons for the Change:
The FCA stated that this shift aims to reduce the administrative burden on firms, encourage market efficiency, and align with global standards, such as in the US. The previous regime, which required naming investors with positions of 0.5% or more, was seen as a barrier that discouraged short selling due to fears of "copycat" trades, "short squeezes," or retaliation from the companies being shorted.
Important Distinctions:
Private vs. Public: Short sellers must still report their identity to the FCA privately at the 0.2% threshold.
Sovereign Debt: Short selling activity in UK sovereign debt and associated CDS is now excluded from the scope of these reporting requirements.
Market Makers: Rules for market makers are also being streamlined, reducing the notification period for exemptions from 30 to 15 days.
These reforms, part of the post-Brexit repeal of EU laws, officially commence on July 13, 2026.
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