# The Short Selling Regulations 2024, Regulation 6: FCA rules requiring notification of a significant net short position in the issued share capital of a company


(1) The FCA may make designated activity rules requiring a person who has a net short position which is—
(a) in the issued share capital of a company which has admitted shares, and
(b) equal to or greater than the notification threshold,
to notify the FCA.
(2) The notification threshold referred to in paragraph (1) is 0.2% of the issued share capital of the company.
(3) For the purposes of this regulation—
(a) a person has a net short position in the issued share capital of a company if the person’s total short position in the issued share capital of that company exceeds the person’s total long position in the issued share capital of that company;
(b) a short position in the issued share capital of a company is the position resulting from—
(i) a short sale of a share issued by the company, or
(ii) entering into a transaction, other than a short sale of a share issued by the company, where an effect of the transaction is to confer a financial advantage on the person entering into that transaction in the event of a decrease in the price or value of a share issued by the company;
(c) a long position in the issued share capital of a company is the position resulting from—
(i) holding a share issued by the company, or
(ii) entering into any transaction where an effect of the transaction is to confer a financial advantage on the person entering into that transaction in the event of an increase in the price or value of a share issued by the company.
(4) Designated activity rules made by virtue of paragraph (1) may, in particular, make provision as to—
(a) the circumstances in which a person has a net short position in the issued share capital of a company for the purpose of rules made by virtue of this regulation, including provision as to the circumstances in which a person is considered to hold a share;
(b) the calculation of a person’s net short position, including—
(i) the transactions that are to be taken into account when calculating a person’s net short position;
(ii) the treatment of short or long positions held by different entities in a group;
(iii) the treatment of short or long positions held by or under different fund structures;
(c) the circumstances in which a notification is required to be re-made or updated, including for example where a person’s net short position falls below the notification threshold.

---
Source: https://www.legislation.gov.uk/ukdsi/2024/9780348265538/regulation/6 (the official version)
Page: https://openlegislation.uk/draft-short-selling-regulations-2024/regulation-6
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.