CfD disclosure falls in line with other holdings

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Contracts for difference (CfDs) will require similar disclosure rules to major shareholdings and instruments which give the right to acquire shares, the FSA says.

The regulator says the changes are needed to ensure the market acts effectively and with confidence. The new rules will require holders of CfDs equivalent to more than 3% of a single company will be required to disclose their position. CfDs are a contract between two parties where one will pay the difference between an asset’s current value and its value at contract time. It can be used to take a short position and is a type of derivative. Holders of shares over 3% and those with financial instruments that give them the right to acquire shares are already governed by similar rules to t...

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