On 28 November 2023, UK FCA issued an update on recent UK Treasury activity re short selling regulations 2023 and 2024, response on sovereign debt/credit default swaps.

• Following its Short Selling Regulation Review call for evidence, UK Treasury laid statutory instrument which increases notification threshold for reporting of net short positions to FCA from 0.1% to 0.2% total issued share capital of issuer.
• Along with an explanatory note, these regulations come into force on 5 February 2024.
• FCA will update on how the new reporting threshold will be implemented in due course.
• UK Treasury issued draft statutory instrument, The Short Selling Regulations 2024 with an explanatory policy note, setting out how UK GVT will replace retained EU law Short Selling Regulation, including sovereign debt aspects, with new tailored UK framework.
• UK Treasury welcomes technical comments on draft instrument by 10 January 2024.
• Following July 2023 UK Treasury Short Selling Regulation sovereign debt and credit swaps consultation, has issued its response with final policy position.