FSA targets shorting abuse in rights issues

In response to the recent severe volatility in shares of companies conducting cash calls, from Friday next week the regulator will enforce disclosure of significant short positions in stocks. It says a “significant short position” is defined as 0.25% of the issued shares achieved via short selling or by any instruments leading to an equivalent economic interest. The FSA says participants exceeding the threshold will be the obligated to disclose positions to the Regulatory Information Service by 3.30pm the following business day. Lender HBOS has come under sever pressure in recent days ...