{
  "url": "https://openlegislation.uk/draft-short-selling-regulations-2024/regulation-9",
  "json_url": "https://openlegislation.uk/draft-short-selling-regulations-2024/regulation-9.json",
  "legislation": "ukdsi/2024/9780348265538",
  "legislation_title": "The Short Selling Regulations 2024",
  "legislation_url": "https://openlegislation.uk/draft-short-selling-regulations-2024",
  "path": "regulation/9",
  "kind": "regulation",
  "number": "9",
  "heading": "FCA power to exempt market making activities and stabilisation",
  "text": "(1) Designated activity rules made by the FCA by virtue of regulation 5 or 6 may provide for an exemption from those rules where—\n(a) a transaction is performed due to market making activities, or\n(b) a person—\n(i) enters into a short sale of an admitted share, or\n(ii) has a net short position,\nin relation to the carrying out of a stabilisation.\n(2) The FCA may only provide for an exemption relating to market making activities under paragraph (1)(a) in respect of the market making activities of an investment firm, credit institution, or overseas entity that is a member of—\n(a) a UK trading venue, or\n(b) a trading venue in an overseas jurisdiction designated under Part 3 of these Regulations.\n(3) The FCA may make designated activity rules relating to an exemption provided for by virtue of this regulation, including in particular provision—\n(a) supplementing paragraph (5)(c) as to what constitutes market making activities for the purposes of this regulation;\n(b) requiring any person that intends to use an exemption provided for by virtue of paragraph (1) to notify the FCA of its intention to do so;\n(c) requiring any person who has given a notification of the kind described in sub-paragraph (b) to notify the FCA where there are any changes affecting that person’s eligibility to use an exemption or where they no longer wish to use an exemption;\n(d) requiring a person using an exemption provided for by virtue of paragraph (1) to provide the FCA, in writing, with information about positions held or activities conducted under the exemption;\n(e) as to the form, content and timing of a notification or information referred to in sub-paragraphs (b) to (d);\n(f) regarding the prohibition or suspension of the use of an exemption where the FCA considers that a person using or intending to use the exemption does not satisfy the conditions relating to the exemption.\n(4) Where the FCA’s rules contain provision of the kind described in paragraph (3)(b) or (c), the FCA must publish a list of persons who are using an exemption provided for by virtue of paragraph (1).\n(5) In this regulation—\n(a) “credit institution” means an undertaking the business of which is to take deposits or other repayable funds from the public and to grant credits for its own account;\n(b) “investment firm” means a person whose regular occupation or business is the provision or performance of investment services and activities on a professional basis;\n(c) “market making activities” means the activities of an investment firm, a credit institution or an overseas entity where it deals as principal in a financial instrument, whether traded on or outside a trading venue in any of the following capacities—\n(i) by posting firm, simultaneous two-way quotes of comparable size and at competitive prices, with the result of providing liquidity on a regular and ongoing basis to the market;\n(ii) as part of its usual business, by fulfilling orders initiated by clients or in response to clients’ requests to trade;\n(iii) by hedging positions arising from the fulfilment of tasks under paragraph (i) or (ii);\n(d) “overseas entity” means a body incorporated in, or formed under the law of, any overseas jurisdiction;\n(e) “stabilisation” means a stabilisation under Chapter III of Commission Delegated Regulation (EU) 2016/1052 of 8 March 2016 supplementing Regulation (EU) No596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the conditions applicable to buy-back programmes and stabilisation measures.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "footnote",
      "label": "f1",
      "text": "EUR 2016/1052. Relevant amendments were made by the Technical Standards (Prospectus Regulation) (EU Exit) Instrument 2020/50 (Financial Conduct Authority). A copy of this instrument is available at https://www.handbook.fca.org.uk/instrument/2020/FCA_2020_50.pdf and may be obtained from the Financial Conduct Authority, 12 Endeavour Square, London E20 1JN."
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukdsi/2024/9780348265538/regulation/9",
    "retrieved_at": "2026-10-30T14:40:14.742662+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}