With effect from 30 June 2009, the FSA has extended the disclosure regime for significant net short positions in stocks in UK financial companies in its current form and scope pursuant to policy statement 09/10.

The disclosure obligation is contained in the FSA's Code of Market Conduct (MAR), and was previously expressed to continue until 30 June 2009. However, it has now been extended without a fixed time limit. The FSA has again emphasised in the policy statement that it is not intended to be a permanent regime, and that the FSA's expectation is that it will either be superseded in due course by broader permanent disclosure measures or be revoked.

Neither the policy statement, nor FSA Consultation Paper 09/15 on the extension of the short selling disclosure obligation which preceded it, refers to the proposal in the February 2009 FSA discussion paper on short selling to extend the current disclosure obligation (which applies to net short positions in stocks of UK financial sector companies) to cover stocks in all UK incorporated issuers regardless of sector. However, the FSA expects to issue a feedback statement summarising the responses received to that discussion paper in the third quarter of 2009. The FSA has also indicated that it will continue to engage in the international dialogue on short selling.

View FSA Policy Statement 09/10: Extension of the short selling disclosure obligation (17 page pdf).

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