These Regulations amend Article 5(2) of Regulation (EU) No 236/2012 of the European Parliament and of the Council of 14 March 2012 on short selling and certain aspects of credit default swaps, in exercise of the powers in Article 5(4) of that Regulation.

Regulation 2 lowers the initial notification threshold for the reporting of net short positions to the Financial Conduct Authority, in relation to the issued share capital of a company that has shares admitted to trading on a trading venue, from 0.2% to 0.1%.

A full impact assessment has not been produced for this instrument as no, or no significant, impact on the private, voluntary or public sector is foreseen.