Short‐selling: progress on international harmonization and forthcoming changes in the UK

Abstract

Purpose

The purpose of this paper is to highlight a number of important developments regarding the regulatory framework for the short‐selling of securities.

Design/methodology/approach

The authors consider steps being taken at a global, EU, and UK level to enhance controls on short‐selling, namely: the International Organization of Securities Commissions' principles of effective regulation of short‐selling; the Committee of European Securities Regulators' proposals for an EU‐wide harmonized short‐selling regime; and the UK Financial Services Authority's planned new rules.

Findings

The paper reveals that firms will need to track these developments and, in due course, establish and adapt systems to ensure compliance. That task should be less onerous if a greater degree of harmonization can be achieved.

Originality/value

This paper raises awareness of these important developments and provides a helpful update on progress.

Citation

Ng, L. and Hunter, T. (2009), "Short‐selling: progress on international harmonization and forthcoming changes in the UK", Journal of Investment Compliance, Vol. 10 No. 4, pp. 20-22. https://doi.org/10.1108/15285810911007354