On 3 October 2023, UK FCA updated sterling rate in short selling guidance.
- FCA updated its short-selling guidance page to update sterling price for calculation.
- Follows FCA October 2021 updated sterling price in short selling guidance.
- UK Short Selling Regulation (UK SSR) gives FCA powers to prohibit or restrict short selling, limit transactions when price of various instruments admitted to trading on UK trading venue has fallen more than appropriate percentage threshold on previous day.
- FINMAR 2.5.6 in the FCA HB therefore sets out details on the exchange rate used for converting EUR into GBP for the purposes of calculating a significant fall in value.
- From 2 October 2023, the corresponding sterling price for €0.5 is £0.43.