On 6 January 2021, there was published on the legislation.gov.uk website The Short Selling (Notification Thresholds) Regulations 2021 together with an explanatory memorandum.
The statutory instrument amends the onshored Short Selling Regulation by lowering the initial notification threshold for the reporting of net short positions to the FCA, in relation to the issued share capital of a company that has shares admitted to trading on a trading venue, from 0.2% to 0.1%. This change will allow the FCA to more effectively monitor short selling activity at a time of increased market volatility, and to act against any short selling activity that impacts on the integrity of the market. The lower threshold will take effect from 1 February 2021 and will apply indefinitely. The FCA has stated that in the interim period between the end of the transition period and 1 February 2021, persons will continue to be able to make notifications to the FCA at the 0.1% threshold if they wish to do so.