The UK’s Financial Services Authority is proposing to extend its temporary disclosure regime for significant net short positions in the stocks of UK financial sector companies until June 30.

The FSA is not proposing to renew its ban on short selling of these stocks, but it notes that it is prepared to reintroduce the ban without consultation if necessary. That ban is to expire Jan. 16.

Under the proposals issued Monday, the FSA will extend the disclosure regime until June 30, with a minor change to its terms. The scope of the disclosure obligations continues to apply only to stocks in UK financial sector companies. The regulator says that continuing to require disclosure will reduce the potential for abusive behaviour and disorderly markets.

“We believe that these proposals are the right measures for maintaining orderly markets. Continuing the disclosure obligations as we propose will reduce the potential for abusive behaviour and disorderly markets,” said Sally Dewar, managing director of wholesale and institutional markets at the FSA. “In addition, we will not hesitate to reinstate the ban if necessary”.

The FSA intends to publish a separate consultation paper within a month, setting out its proposals for the longer-term short selling regime.