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:
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- 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.
