Britain’s Financial Conduct Authority (FCA) has confirmed plans to stop publishing the identities of short sellers, marking a major shift toward deregulation as part of the UK’s post-Brexit drive to streamline financial markets.
Under the new regime, the FCA will disclose only anonymised, aggregate net short positions for investors holding more than 0.2% of a company’s shares — aligning UK practices more closely with the U.S. model.
“Smart reforms will enhance UK financial markets, attract investment, and support economic growth,” said Rob Hailey, Head of EMEA Government Affairs at the Managed Funds Association.
While hedge funds have welcomed the move as a relief from excessive compliance burdens, critics warn that reduced transparency could hinder corporate issuers and institutional investors.
Introduced after the 2008 global financial crisis, the original short-selling disclosure rules were aimed at curbing market volatility. The FCA will now consult further on how and when it should exercise its emergency powers to restrict short selling in exceptional circumstances.