The Financial Conduct Authority (FCA) has finalised significant reforms to the UK short selling regime, with the new rules coming into force from 13 July 2026.
Introduced under the new Short Selling Regulations 2025 (SSR 2025), the reforms are designed to:
- simplify reporting obligations,
- reduce operational and administrative burdens,
- improve market efficiency,
- and enhance the competitiveness of UK capital markets while preserving market integrity and regulatory oversight.
Alongside the final Policy Statement (PS26/5), the FCA has also published an Operational Guide outlining how the new framework will work in practice and what firms should now be preparing for.
Implementation Timeline
The FCA will introduce the regime in two phases.
Phase 1: 13 July 2026
This is the main implementation date and includes:
- the new FCA short selling rules take effect,
- publication of the first Reportable Shares List (RSL),
- publication of Aggregate Net Short Positions (ANSPs),
- revised reporting requirements,
- and updates to FCA reporting systems.
Phase 2: 30 November 2026
The second phase introduces enhanced reporting functionality, including:
- bulk upload capabilities for firms submitting multiple short position reports.
The phased rollout is intended to provide firms with additional time to adapt systems and operational processes.
Key Changes Under the New Regime
UK Sovereign Debt and Sovereign CDS removed from scope
Under the new regime, UK sovereign debt and related credit default swaps (CDS) will fall outside the scope of position reporting and covering requirements. Consequently, the current exemptions available to market makers and authorised primary dealers relating to sovereign debt and associated CDS transactions will no longer apply. However, the FCA will retain emergency intervention powers in relation to short selling activity involving UK sovereign debt and related CDS instruments.
New Reportable Shares List (“RSL”)
The existing Exempted Shares List will be replaced with a new Reportable Shares List (RSL).
The RSL will:
- identify shares admitted to trading on UK trading venues that fall within scope of the regime,
- specify the primary ordinary share class for issuers with multiple share classes,
- and be published by the FCA in both CSV and XLSX format.
This represents an important operational change for firms managing reference data and reporting logic.
Aggregate Net Short Position (“ANSP”) disclosure
Once of the most significant reforms is the removal of public disclosure requirements for individual short positions. Under the current regime, firms holding net short positions of 0.5% or more of issued share capital must publicly disclose those positions. Under the new framework, the FCA will instead publish aggregated net short positions (ANSPs) by issuer, without identifying individual firms or investors.
Extended reporting deadline
The new framework introduces an extended reporting deadline of 23:59 of T+1. This is designed to provide firms with additional operational flexibility when calculating and submitting short position reports.
Governance and Recordkeeping Remain a Regulatory Priority
The FCA has formalised the requirement for firms to maintain records of arrangements for covering a short sale for at least five years. Firms should therefore ensure that reporting controls, oversight frameworks and recordkeeping procedures remain robust.
Simplified Market Maker Exemptions (MME)
Under the revised rules, eligible firms will no longer need to make repeated exemption notifications in the same way as under the previous framework. Instead, the market maker exemption will be changed to an activity-based exemption. This is expected to significantly reduce operational and compliance burdens for market makers while preserving regulatory oversight.
FCA retains emergency intervention powers
FCA has confirmed that it will retain emergency powers, meaning that it continues to hold the ability to prohibit or restrict short selling, impose additional reporting obligations and introduce temporary market measures where necessary to support orderly markets and financial stability.
What Firms Should Be Doing Now
With implementation approaching, firms should now begin assessing the operational impact of the new regime.
Key focus areas include:
- operational gap assessments,
- reporting system enhancements,
- data and reference mapping reviews,
- governance and control frameworks,
- review of market maker exemption processes,
- and testing of FCA reporting workflows ahead of implementation.
Although the new framework is intended to be simpler and more proportionate, firms will still be expected to maintain strong operational controls and accurate reporting processes.
How can Blueprint GRC Help
As regulatory reporting requirements continue to evolve, firms are facing increasing pressure to maintain reporting accuracy, operational efficiency and regulatory compliance. At Blueprint GRC, our regulatory reporting solutions help firms streamline reporting workflows, enhance data accuracy, strengthen governance frameworks and adapt efficiently to new regulatory requirements. All of this can support firms to have a smoother and more controlled transition ahead of the July 2026 implementation date.
