The U.K. government has unveiled a draft of the Short Selling Regulations 2024, which is set to replace the existing U.K. Short Selling Regulation. The prior regulation, initially onshored from the European Union, is due for repeal under the Financial Services and Markets Act 2023.
This information comes to us via a new published draft and a Policy Note released by the HM Treasury. According to the Policy Note, the new regulatory measures were put forth following extensive consultations on the short selling regime, as well as discussions focused on the regulation of sovereign debt and credit default. Both the draft and the note were published by the law firm Shearman & Sterling LLP.
The principal document, the Draft Short Selling Regulations 2024, has undergone multiple revisions, reflecting the inputs from these aforementioned consultations. This marks another step in the U.K.’s increasing efforts to update and refine its financial regulations following its departure from the EU.
The forthcoming regulation changes are an important watch item for legal professionals in the corporate sector, especially for those engaged in financial services and securities. The full impact of the Short Selling Regulations 2024, once implemented, may bring significant alterations to the U.K.’s legal and commercial landscape.