19 June 2008
In brief
The changes FSA has made to its short-selling rules has resulted in a raft of inquiries on how they should be implemented. The body introduced the changes to its Code of Market Conduct to prevent abuse following severe volatility in the share of companies conducting rights issues. The changes mean all traders that borrow over 0.25% of a company’s stock for short-selling must declare their holding. The FSA is also considering action in other facets of disclosure including a restriction of lending of stock securities in rights issues.
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