Following the temporary ban on the short selling of stocks in UK financial sector companies at the end of 2008 the Financial Services Authority (FSA) has been conducting a comprehensive review of short selling. In its response to the FSA the ACT recognises short selling as a legitimate market activity and therefore would not want to see an outright ban on such transactions. However to minimise the risk of abusive behaviour and to promote well informed and transparent markets the ACT agrees with the FSA that a disclosure regime for holders of short positions would be beneficial.
The FSA discussion paper is available at http://www.fsa.gov.uk/pages/Library/Communication/PR/2009/023.shtml
Download the ACT response here;
