FCA to Reassess Notification Amid Discrepancies with EU Guidelines

The Financial Conduct Authority (FCA) has announced its intention to reassess a notification regarding the market maker exemption under the European Short Selling Regulation.

Discrepancies between FCA’s Interpretation and EU Regulation

The decision comes after discrepancies were identified between the FCA’s interpretation of the guidelines and those outlined in the EU regulation. According to sources close to the matter, the FCA had previously notified ESMA (European Securities and Markets Authority) of its intention to comply with the guidelines.

However, upon further review, the FCA has discovered inconsistencies between its own interpretation and that of the EU regulation. The regulator has subsequently decided to reassess the notification in light of these findings.

FCA’s Commitment to Compliance

A spokesperson for the FCA explained:

We take our obligations under ESMA’s guidelines seriously and are committed to ensuring compliance with the European Short Selling Regulation. In this case, we have identified discrepancies between our interpretation and that of the EU regulation and have decided to reassess our notification accordingly.

Market Maker Exemption

The market maker exemption is designed to facilitate market making activities by allowing market makers to engage in short selling without being subject to certain requirements. The exemption is intended to promote liquidity in financial markets.

ESMA Guidelines

ESMA has issued guidelines on the implementation of the European Short Selling Regulation, which sets out the procedures for national competent authorities to follow when granting exemptions from certain requirements.

FCA’s Reassessment Process

The FCA’s decision to reassess its notification follows a review of the EU regulation and ESMA’s guidelines. The regulator is committed to ensuring compliance with the regulation and will provide further updates on its intentions once the reassessment is complete.

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