SBAI Regulatory Alert - Short Selling

The market turmoil caused by the global outbreak of COVID-19 in 2020 prompted a small number of regulators to impose short-selling restrictions or enhanced reporting in their respective. These restrictions are summarised in this regulatory alert.

We have extensively covered our views on short-selling reporting and restrictions in prior consultation responses. We continue to highlight the importance of short-selling as a risk management tool and as a contributor to liquidity. We also draw attention to the negative consequences of regulatory interference in a functioning price formation process, for example potentially triggering further sell-offs.