UNITED KINGDOM: FCA Lower Initial Notification Threshold of 0.1% Takes Effect

Tuesday February 2 2021

On the 1^st February 2021, the Short Selling (Notification Thresholds) Regulations 2021 took effect. The regulation amended the initial notification threshold under Article 5 of the SSR for the reporting of net short positions to the FCA, in relation to the issued share capital of a company that has shares admitted to trading on a trading venue, from 0.2% to 0.1%.

The lower initial notification threshold of 0.1% for the reporting of net short positions will now apply indefinitely.

Amending the threshold under Article 5 of the SSR will result in the UK requirements differing from the requirements under the EU SSR and associated ESMA decision. In the UK, the 0.1% threshold will apply in respect of shares admitted to trading on UK regulated markets and UK Multilateral Trading Facilities (MTFs), whereas in the EU the 0.1% threshold will apply only in respect of shares admitted to trading on EU regulated markets.

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