Companies & markets

New 'short' rules cause a muddle

Nick Goodway, Evening Standard
7 July 2008, 11:18am

Almost half the declarations made to the Stock Exchange about short positions taken in companies engaged in rights issues have been wrong — just two weeks after the new rules came into force in a bid to halt market abuse.

Wall Street traders
Widespread confusion: Wrong declarations made to Stock Exchange

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There is widespread confusion over the disclosures in the hedge fund industry, which is the main target of the new regime from the Financial Services Authority. The industry has been highly critical of the new rules, which it claimed were an ill thought-out reaction to help protect banks' rights issues.

Only 41 short-position announcements have been made and, according to the Financial Times, 20 of these either missed the filing deadline, contained incorrect calculations or had not been required.

The FSA said it was early days but was 'keeping the technicalities of the disclosures under review'.



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