UK set for short selling switchover

Parliament has made the regulations revoking the UK’s short selling regime as of 13 July 2026. On this date the Short Selling Regulations 2025 and a new rulebook set by the Financial Conduct Authority will replace the current EU-derived framework.

The Financial Services and Markets Act 2023 (Commencement No. 14) Regulations 2026 were made on 3 June 2026. These commencement regulations bring into effect the revocation of the Short Selling Regulation as assimilated into UK law after Brexit. They also revoke legislation relating to the UK SSR, including former EU technical standards and implementing regulations.

The revocation takes effect on 13 July 2026, now formally the “main commencement day” under the Short Selling Regulations 2025 and the date those replacement regulations come into force. The FCA’s new short selling rules sourcebook will also start to apply from this day, subject to transitional provisions. Read our previous blogpost for more: FCA changes UK short selling rules.

Market participants will need to update their systems to reflect the incoming changes to the UK regime. For market makers, this will include preparing to make a new annual attestation under the FCA’s rules. Where necessary, firms will also need to factor in divergence with EU standards which remain in effect.

We recently hosted a webinar in which the Linklaters financial regulation team explain the implications of the revised regulatory framework for short selling in the UK. Get in touch with us if you would like to access the recording.