On 7 May 2026, AIMA published guidance on new UK short selling regime.
- AIMA published guidance note related to the UK's new short selling regime.
- Follows April 2026 UK FCA issued final clearer and simpler short selling rules.
Short Selling Regime
- Practical guidance on new UK short selling regime, which takes effect on Jul. 13, 2026.
- Changes represent significant update to UK’s rules, replace previous EU-based short selling regulation, introduce targeted reforms aimed at making reporting simpler.
- New regulations also aim to reduce the operational and compliance burden for firms.
- Key changes include simpler reporting of short positions, with firms now only needing to report when their net short position reaches 0.2% of a company’s shares.
- FCA will publish combined short positions for each company once they reach 0.2%.
- The current system, which lists shares exempt from the requirements, is being replaced with a clearer list of shares that are in scope, criteria also being updated.
- Short selling covering and reporting rules will no longer apply to UK government debt.
- Guidance to help firms interpret changes, assess operational impact, prepare ahead.
