The SI addresses deficiencies in retained EU law in relation to short selling arising from the withdrawal of the UK from the EU, ensuring the legislation continues to operate effectively at the point at which the UK leaves the EU. It makes technical amendments to existing UK legislation that are required to ensure that SSR continues to operate effectively in a no deal scenario after exit day. It will also amend Part 8A of FSMA, which implemented parts of SSR. The instrument clarifies that financial instruments admitted to trading on UK venues, UK sovereign debt and UK sovereign CDS would be subject to the retained short selling regulation and those financial instruments admitted to trading on EU venues will no longer be in scope of UK regulation, in line with the current treatment of third country instruments. The SI also transfers several functions, from EU supervisory bodies, to the FCA, and will also transfer the power to set notification thresholds for short selling positions, from the EU Commission to the Treasury.
Also see EU Exit SI tracker