On 7 August 2023, the Managed Funds Association (MFA) issued a letter in support of the FCA's proposed changes to its Short Selling Regulation (SSR) relating to sovereign debt and credit default swaps (CDS).

Background:

The MFA supports the UK Government’s proposal to eliminate:

• • The cover requirement for short selling sovereign debt;
  • The ban on uncovered sovereign CDS positions; and
  • Low reporting thresholds for net short positions in sovereign debt and CDS.

The MFA emphasized that the short selling regulation review is a critical step toward strengthening the UK’s dynamic and attractive international financial services centre.