On 13 January 2025, the Short Selling Regulations 2025 (the Regulations) were made and published on legislation.gov.uk, along with an explanatory memorandum. The Regulations will replace assimilated law concerning short selling, including the Short Selling Regulation.

The Regulations establish a new legislative framework for the regulation of short selling, which creates designated activities for short selling and, as a result, gives the Financial Conduct Authority (FCA) rulemaking powers related to these activities and powers to intervene in exceptional circumstances.

The aim of giving the FCA these additional rulemaking responsibilities is to enable financial services firms and consumers to benefit from agile, tailored rule-making that suits UK markets.