The FCA Confirms New 0.1 Percent Net Short Reporting Will Be Required From 6 April 2020

The Financial Conduct Authority (FCA) has confirmed that it has adjusted its systems to facilitate reporting in accordance with the decision of the European Securities and Markets Authority (ESMA) of 16 March 2020 to temporarily lower the threshold for notifying net short positions to European Union regulator under the Short Selling Regulation (SSR) from 0.2 percent of issued share capital to 0.1 percent.

The FCA previously stated that, although ESMA’s decision would apply in the UK, the FCA’s systems required certain changes, and firms should continue to report at the previous thresholds until further notice.

The FCA has confirmed that the required systems changes have been made, and firms should report notifications at the lower threshold from, Monday 6 April 2020. Firms are not required to amend and resubmit notifications submitted to the FCA between 16 March 2020 and 3 April 2020.

In line with the SSR, the new reporting obligation as applied in the UK will apply to shares for which the FCA is the relevant competent authority under the SSR (as confirmed in ESMA’s FIRDS register), and the reporting obligation does not apply to exempted shares where the principal venue for the trading of the shares is located outside of the EU.