CP25/29: Changes to the UK Short Selling Regime

Consultation opens
28/10/2025
28/10/2025
Consultation closes
16/12/2025
Consultation papers First published: Last updated: 28/11/2025

We are consulting on our proposed rules and guidance for short selling activity.

Read CP25/29 (PDF) 

Why we are consulting

Our proposals are based on feedback from the Treasury’s Short Selling Regulation: Call for Evidence. This concluded that it was not necessary to fundamentally change the current short selling regime, although it should be modified to alleviate disproportionate burdens, on firms, that may inhibit or discourage short selling and its associated benefits.

As a result, our proposals intend to create a more efficient, effective, and coherent short selling regime that retains sufficient visibility and controls over short selling activity to manage any risks and maintain the orderly and effective functioning of UK markets, while removing disproportionate costs. 

This supports the FCA’s market integrity objective, bolsters the competitiveness of UK financial markets, and contributes to the UK’s wider economic growth while providing appropriate safeguards.

Update 28 November 2025

To accompany the consultation paper, and to further support firms’ understanding of our proposals, we have produced a derivation and changes table (PDF). This details how we have proposed to transfer rules and guidance from the current short selling regime.

See our additional information for firms:

Who this is for

This consultation will be of interest to:

  • Any persons conducting short selling activity.
  • Market makers.
  • Securities lenders.
  • Companies with shares admitted to trading on UK trading venues.
  • Law firms, consultants, and trade associations, with an interest in short selling activity.

Next steps

Online response form

We are asking for comments on this Consultation Paper by 16 December 2025.

You can send them to us using the form on our website. Or in writing to: Aaron Smith, Financial Conduct Authority, 12 Endeavour Square, London, E20 1JN.

Implementation

We're proposing a phased approach to implementation to accommodate changes to operational arrangements for both us and industry.

Phase 1

  1. 1

    April 2026

    Policy Statement, final rules, Statement of Policy and draft of reportable shares list.

  2. 2

    June 2026

    Phase 1 implementation on main commencement day: Updated reportable shares list, aggregated net short positions disclosure, reporting rules and new rules / forms for market maker exemption.

Phase 2

  1. 1

    December 2026

    Phase 2 implementation: bulk upload feature to submit multiple net short position notifications and a new system for market maker exemption notifications that will require firms to renotify previous notifications, made both before and following the main commencement day.

  2. 2

    1 June 2027

    End of transitional period for market maker exemptions.

Background

The UK Short Selling Regulation (UK SSR) is assimilated law, incorporated into UK law by the European Union (Withdrawal Act) 2018. This forms the basis of the UK short selling regime. The UK SSR sets out requirements for short selling activity in financial instruments admitted to trading on UK trading venues. This includes shares, UK sovereign debt, and UK sovereign credit default swaps.

The Financial Services and Markets Act 2023 sets out the legal framework for repealing and replacing assimilated law. As part of this process, the Treasury has established a new legislative framework for the regulation of short selling which gives the FCA powers to create new firm-facing rules. It also broadly replicates our current emergency powers.


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