As the Financial Conduct Authority (FCA) moves to modernize the UK’s short-selling regime, investment firms face a pivotal moment. The proposed Short Selling Regulations 2025 (SSR 2025) represents the first major overhaul to this framework in over a decade, marking a shift toward a more digital, data-driven, and distinctly UK-focused approach.
In Elira Solutions’ recent analysis, “Operational Considerations of the FCA’s CP25/29: Changes to the UK Short Selling Regime,” the analysis highlights how the new regime aims to “modernise the internal short-selling control architecture to align with a UK-native model rather than a continuation of the EU regime.” In other words, while the principles of transparency remain, the operational structure behind compliance and reporting is being reshaped, and firms must modernize alongside it.
From Public Exposure to Data-Led Oversight
Under the proposed rules, the FCA will no longer publish the names of individual short sellers, a practice in place since the post-2008 crisis reforms. Instead, firms will privately report any net short positions of 0.2% or greater, while the FCA will publicly release only an anonymized, aggregate net short position (ANSP) per issuer.
In practice, this means:
• A reduction in public “name and shame” risk for market participants.
• Ongoing responsibility for timely, accurate position reporting.
• A stronger focus on automation and data precision within internal reporting frameworks.
The FCA confirmed these changes on October 28, 2025, as part of the UK’s broader effort to streamline regulation and enhance market competitiveness. The update also brings the UK’s approach closer to the U.S., where only aggregated short-interest data is disclosed publicly.
Operational Implications: A Push Toward Automation
While the reforms simplify disclosure requirements, they also elevate expectations for data quality and responsiveness. The FCA has indicated that it will use data analytics to review submissions, identify outliers, and investigate inconsistencies.
As Elira Solutions notes, “the FCA will be publishing machine-readable aggregates daily,” signaling a shift toward continuous, automated oversight. For firms, this introduces new operational demands, including:
• Standardizing short-position calculations (including delta-adjusted derivatives) across teams.
• Incorporating machine-readable data sources, such as the new Reportable Shares List (RSL).
• Building systems capable of handling bulk submissions and reliable validation checks.
The FCA also proposes extending the short position reporting deadline to 11:59 p.m. on the next working day and simplifying the process for market-maker exemptions. Both welcome efficiencies that still depend on strong end-of-day data management to prevent errors.
How INDATA Can Help Firms Adapt
At INDATA, we view regulatory change as an opportunity for innovation. The FCA’s SSR 2025 proposals reinforce why investment managers need integrated, automated, and data-driven technology across every layer of their business — from trading to reporting.
1. Automation
INDATA’s Architect AI and iPM Private Cloud platforms eliminate manual bottlenecks by automating trade order management, compliance monitoring, and data reconciliation — ensuring that every short position is captured, calculated, and reported accurately.
2. Data Integration
Our Master Data Model (MDM) unifies data across portfolios, trading, and compliance functions. As regulators transition to machine-readable formats, INDATA clients are already equipped to seamlessly ingest, map, and validate information from multiple sources
3. Regulatory Reporting
From daily compliance checks to advanced BI Reporting powered by Microsoft Power BI, INDATA provides the auditability and transparency required by the FCA’s modernized oversight model. Firms can demonstrate data accuracy and governance essentially as regulators intensify their data-led supervision.
Future-Proofing Compliance
The FCA’s move from public disclosure to aggregate transparency isn’t just a procedural change; it’s part of a larger digital shift in how market behavior is monitored. As Elira Solutions observes, “surveillance will be entirely bilateral, near-real-time, data-led, and easier for the FCA to pattern-match.”
For buy-side firms, this evolution places technology at the heart of effective compliance. Those who invest early in automated workflows and integrated data frameworks will be best positioned to meet the new standards and maintain a competitive edge as the regime comes into effect.
Turning Regulation into Opportunity
The FCA’s reforms point toward a smarter, more proportionate approach to short-selling oversight — one that rewards firms with modern infrastructure.
With INDATA’s AI-powered OMS/PMS and unified reporting capabilities, investment firms can do more than meet new regulatory requirements; they can gain an operational advantage through stronger data control, faster reporting, and reduced compliance friction.
Discover the INDATA advantage — Request a Demo Today
