If an EU regulator (or the FCA) decides to impose a ban, that regulator notifies other EU regulators and the FCA, who then consider whether to do the same in their jurisdictions. The intention is to avoid short selling activity linked to particular shares moving to other jurisdictions where these shares are also traded.
When considering whether to use our short selling powers following action by an EU regulator, our standard policy has been to assist that regulator. We expect to continue that policy for future requests unless, for exceptional reasons, we consider that our assistance is not necessary.
We have rarely imposed our own ban on the short selling of UK shares (although we did take some comparable actions in a few cases during the 2008 financial crisis). We have never initiated a ban under the new powers given to us by the SSR. While we cannot rule out that this will be appropriate in particular circumstances, we set a high bar on imposing any bans.
Our focus is on maintaining open markets that operate with integrity. We note that an ability to short sell can contribute to this, including by supporting effective price formation, enhancing liquidity and enabling risk management.
We note ESMA's decision to amend the thresholds for the notification of short selling positions to Competent Authorities under the SSR.
We will apply this change in the UK.
This requires changes to our technology to receive these data. We are working on what is involved to effect these changes and how long it will take to implement them. In the meantime, firms should continue to report according to the previous thresholds, until further notice.
