New UK Disclosure Regime for Short Positions in Companies Undertaking Rights Issues

On 13 June, the Financial Services Authority (FSA) in the UK announced the introduction of new provisions in its Code of Market Conduct which will require the disclosure of “significant” short positions in stocks of companies admitted to trading on prescribed markets which are undertaking rights issues.

The new disclosure regime will come into effect from 20 June 2008 and is contained in the Short Selling Instrument 2008.

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