MFA Backs FCA’s Short Selling Reform Consultation to Enhance UK Financial Markets
The Managed Funds Association (MFA) has publicly endorsed the UK Financial Conduct Authority's (FCA) initiative to modernize short selling regulations. The proposed reforms aim to bolster market efficiency, attract investment, and stimulate economic growth. Key measures include aggregated net short position disclosures and extended reporting requirements.
Short selling remains a vital mechanism for price discovery and liquidity provision. The FCA's consultation seeks to strike a balance between reducing operational burdens and maintaining market oversight. These changes align with the UK government's broader legislative framework set for implementation in January 2025.