The FSA will continue to enforce its ban on short selling on UK financial stocks following a 30-day review of the rule.
However, the regulator has removed the need for daily disclosure of short positions on the affected stocks.
When the FSA first implemented the ban in the Code of Market Conduct, following the near collapse of HBOS, it said it would review the move after 30 days.
“The FSA has now conducted the 30-day review and, with one exception, has concluded that it should not make any changes to the measures at this time,” the regulator says in a statement.
Those holding significant short positions will no longer need to disclose their position on a daily basis provided there is no change. The Code of Market Conduct will be amended to reflect the change.
The FSA is due to publish a more comprehensive review of short selling and the effect it has on the stock market in January.
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