The FSA says it will not extend its ban on the short-selling of UK financial services stocks but warns it will "not hesitate" to re-instate it if necessary.
It says the emergency ban, introduced in September, will come to an end on 16 January as originally proposed. But the regulator is bidding to extend the disclosure regime on significant net short positions until the end of June. FSA managing director of wholesale and institutional markets, Sally Dewer, says the moves will help maintain orderly markets. "Continuing the disclosure obligations as we propose will reduce the potential for abusive behaviour and disorderly markets," she adds. The FSA is proposing to make one change to the regime. Currently a disclosure must be made if a ne...
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