On 22 November 2023, HM Treasury (HMT) published a draft statutory instrument (SI), the Short Selling Regulations 2024, and accompanying policy note. The documents were published alongside the Chancellor’s Autumn Statement.

HMT is publishing the draft SI to replace the EU-inherited Short Selling Regulation, as part of its programme to deliver a Smarter Regulatory Framework for financial services that is tailored to the UK. The Government published a Call for Evidence on the Short Selling Regulation in December 2022, as part of the Edinburgh Reforms, with the aim of putting in place a regulatory regime for short selling that is tailored to the UK, which supports market integrity and bolsters the competitiveness of UK financial markets. In July 2023, the Government published its response to the Call for Evidence, setting out its approach for a UK regime, including key changes to short selling disclosure requirements.

The draft SI will implement the reforms to the UK short selling regime set out in the Call for Evidence response document.

HMT welcomes any technical comments on the draft SI by 10 January 2024.