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ALERT: UK Financial Stock Short Selling Regime—FSA Releases Revised Instrument and FAQs

posted by Akin Gump

The United Kingdom Financial Services Authority (FSA) has released on 23 September 2008, a new Short Selling (No 3) Instrument 2008 and revised FAQs. The Instrument makes a few minor changes to the provisions as previously published. The revised FAQs include some new questions and answers and revise certain of the answers previously given.

Key Points From the Revised FAQs

The revised FAQs clarify that the prohibition on short sales and the disclosure requirements apply to both covered and uncovered/naked short positions.

The prohibition and disclosure requirements do not apply to—

  • the issuance of convertible bonds
  • credit default swaps (CDSs)
  • stock lending activities.

See the full alert here.

For specific advice in relation to your own disclosure obligations under this new regime or if you otherwise have questions regarding this alert, please contact—