UKEMA calls for ‘more proportionate’ short selling regime

 

The UK Equity Markets Association (UKEMA) has backed changes to improve the UK’s short selling regime and support market makers.

Responding to the Treasury’s Call for Evidence on the Short Selling Regulation, UKEMA added its support for the government’s ambition to design a short selling regulation that is tailored to the needs of UK markets, companies and investors.

UKEMA’s response agreed with proposals for market makers to remain exempt from the disclosure regime but called for the current notification regime to be abolished, with market makers being able to rely on their registration as market makers, and that the disclosure regime should be re-set in terms of timings and percentage thresholds and should mirror that for long positions.

Sunil Dhall, Chair of the UKEMA said: “The UKEMA are hugely supportive of the Chancellor’s ambition to drive growth and competitiveness in the UK financial services sector. This review provides an opportunity to reform the UK’s short selling regime in a way that reduces bureaucracy and is more proportionate for small and mid-cap investment banks.”

The UKEMA’s response to the Short Selling Regulation Review can be viewed here.

About UKEMA

The UKEMA represents those investment banks and equity brokerage firms that focus on raising capital for SMEs, particularly listed firms.

Its members trade in shares of over 2,000 quoted companies, accounting for 57% of London Stock Exchange turnover by volume in 2021, and produce research on over 1,700 companies, representing 87% of listed issuers.

UKEMA member firms facilitated investment of more than raised £6.7bn in funds for companies in 2021, supporting growth in the real economy, employment, innovation, entrepreneurship and wealth creation.