Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment her Department has made in the level of short-selling activity in UK-listed companies; and what steps the Financial Conduct Authority is taking to monitor the potential impact of short positions held by overseas fund managers on UK equity markets.

The UK is a leading hub for global capital and the largest equity capital market in Europe, helping businesses across the economy to raise the capital they need to drive innovation and growth.

To support this, the government is committed to ensuring the UK remains an open and connected financial centre. International participation in UK markets supports liquidity, investment, and economic growth. At the same time, all firms operating in UK markets, including overseas participants, are subject to the UK's robust regulatory framework which underpin market integrity and financial stability.

In November 2024, the government laid legislation to introduce a new UK short selling regime. The legislation gives the FCA rulemaking and intervention powers over short selling within a new dedicated regulatory framework. The FCA published its associated rules in a Policy Statement in April 2026.

These reforms will enable short selling to operate with appropriate safeguards, while supporting effective and globally competitive markets.