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ARTICLE · 24 JANUARY 2025

The U.K.'s New Lighter-touch Short Selling Regime

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The U.K. Short Selling Regulations 2025 ("SSR 2025") have been made. This paves the way for the U.K. to repeal and replace the regime implemented while the U.K.

United KingdomFinance and Banking
Thomas Donegan
Thomas Donegan
Bob Penn
Bob Penn
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Nick Bradbury
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Taylor Pugliese
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Annabelle Whitby-Smith
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The U.K. Short Selling Regulations 2025 ("SSR 2025") have been made. This paves the way for the U.K. to repeal and replace the regime implemented while the U.K. was in the European Union and then onshored into U.K. domestic law when the U.K. left the EU.

There are significant changes being made to the scope and approach. Technical changes will also be made in various areas. This is noteworthy in that the new Labour government has not paused these proposals to pursue closer alignment with the EU, but instead taken forwards the "lighter-touch" regime proposed under the previous government.

In the U.K., short selling is currently regulated under the Short Selling Regulation ("U.K. SSR"), which is the assimilated version of the EU Short Selling Regulation ("EU SSR") (Regulation (EU) No 236/2012). The changes made by the SSR 2025 are intended to make the U.K. financial markets more competitive and agile post-Brexit. There will now be meaningful divergences between

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