In February, the FSA extended the short-selling disclosure requirement, which applies to net short positions of 0.25% of the companys issued share capital, until June 30. It was initially introduced in September 2008.
However, the authority has decided to extend this indefinitely, or until it can be replaced by a regime for all British stocks.
A discussion paper looking at options for short-selling was issued in February, and a consultation period on the proposals will end on June 12.
The FSA plans to publish a feedback statement in the third quarter of this year, where rules will apply to the wider British market, therefore overruling the short-selling disclosure regime on financials.