There is much noise about the importance and competitiveness of the UK’s position in global financial markets, particularly post Brexit.
A recent research report from TheCityUK quantifies some of these strengths as well as identifying the UK’s main competitors in various market segments. Read more here.
In the latest online edition of The Treasurer, the ACT’s magazine, we examine the Chancellor’s proposed “Edinburgh Reforms”, which are aimed at making the UK financial sector more competitive. You can read the article here.
One of these reforms is a proposal to loosen the rules around short selling of a company’s shares and HM Treasury published a ‘call for evidence’ on short selling that is open for public consultation until 5 March 2023. The Ministerial Foreword to the consultation states that: “Short selling plays a healthy role in the proper functioning of financial markets. It provides essential liquidity to markets which drives investment in British firms, emboldens economic growth, and helps ensure investors pay the right price when investing in shares”. To facilitate short-selling, HMT is considering inter alia whether to relax the reporting and disclosure rules applicable to short-sellers. On balance, these considerations may appear to be more beneficial to hedge funds and other short-sellers than to corporate issuers of equities and we would be grateful to receive any relevant comments to: technical@treasurers.org using the subject line “Short Selling Consultation”. Alternatively, you may wish to comment directly to HMT using the link above.
James Winterton
Associate Director, Policy & Technical