The FCA has confirmed in its Statement on UK Markets that it has not introduced a ban on short-selling but it will continue to closely monitor market activities, including short selling activity.
The FCA also notes that short selling is a critical underpinning of liquidity provision, which would need to be carefully balanced against any intervention measures to prevent short selling.
Some European countries have introduced short selling bans... The FCA has not introduced such a ban. Most European NCAs have not introduced such bans. Nor has the United States or any other major financial market. The FCA continues closely to monitor market activity, including short selling activity. A great many investment and risk management strategies rely on the ability to take 'long' and 'short' positions. These benefit a wide range of ordinary investors including the pension funds for employees of companies and local government. We also note that short selling is a critical underpinning of liquidity provision. The loss of these benefits would need to be carefully balanced before determining that any intervention to prevent short selling was appropriate.