In a new consultation, the FCA has outlined plans to stop disclosing the identities of individual short-sellers. Instead, it will only publish the total, or aggregate, net short position for each listed company.

This change marks a clear departure from the current EU-derived regulations, which mandate public disclosure for any short position exceeding 0.5% of a firm’s share capital, and moves the UK’s approach closer to the system used in the United States.

Additionally, the threshold for privately notifying the regulator of a short position is set to double, from 0.1% to 0.2%.

The FCA has framed the proposal as part of a wider drive to support growth and make the UK a more attractive global financial centre. The regulator argues that removing “unnecessary barriers” will encourage short-selling, which it views as a vital market function that supports price discovery, provides liquidity, and helps with risk management. It is also hoped the move will reduce ‘copycat’ trading, where other investors pile into a short trade after a major fund’s position is revealed.

However, the proposal has raised concerns about transparency. Critics warn that allowing anonymity could empower hedge funds to build large covert short positions, potentially destabilising markets. Patrick Sarch of law firm White & Case told City AM that while the change may reduce compliance friction, it comes “at the expense of transparency for issuers and other investors”, who will no longer know who is betting against their stock. He suggested the reform is unlikely to materially impact the UK market’s overall attractiveness.

This initiative is the latest step in a broader push by UK regulators to ease the burden on financial firms, following calls from Chancellor Rachel Reeves for a more pro-growth approach. The FCA has already consulted on scrapping other data collection requirements to benefit thousands of firms. The consultation on short-selling will close in December, with the new rules expected to be implemented in 2026.