On 22 November 2023, HM Treasury in the UK published a draft of the Short Selling Regulations 2024, along with an accompanying explanatory policy note. The documents comprise the government’s response to the December 2022 call for evidence on short selling regulation, and a consultation related to the short selling of sovereign debt and credit default swaps. The publication has stirred a wave of analysis among legal experts and practitioners worldwide.
The Draft SI and Note follow the UK government’s response to HM Treasury’s call for evidence on the Short Selling Regulation. The draft introduces the essential changes that finance legal professionals will have to adapt to in the coming period.
Both documents are part of the ongoing consultation regarding the short selling of sovereign debt and sovereign credit default swaps. The consultation represents a crucial step towards the regulation of this often controversial market. Combined, they provide a snapshot of the UK government’s intent to closely regulate this lucrative and high-risk sector.
Legal professionals working on corporate finance, M&A, or regulatory compliance should familiarize themselves with the Draft SI. Understanding the government’s indication of future regulatory shifts could impact the structuring of deals and risk assessments.
The Draft SI and Note were supplied by Katten Muchin Rosenman LLP, an international law firm offering comprehensive services to clients across various industries. Their report on the new regulations provides invaluable insight for those wishing to understand the dynamic regulatory landscape.