U.K. – MFA Backs FCA’s Proposed Changes to Short Selling Regulation

U.K. – MFA Backs FCA’s Proposed Changes to Short Selling Regulation

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.