The UK’s Financial Services Authority has decided to demand greater disclosure about positions held through so-called contracts for difference (CFDs).
The FSA announced today that after receiving feedback on its consultation paper about CFDs, published last November, it has decided a general disclosure regime for long CFD positions will be implemented as the most effective way of addressing concerns in relation to voting rights and corporate influence.
The disclosure threshold will be 3%, in line with the existing disclosure rules, it said. Also, existing share and CFD holdings, in the same company, should be aggregated for disclosure purposes, it added.
“Our goal is to provide an effective and proportionate disclosure regime that works for all involved, and sustains market confidence and efficiency. We have received extensive feedback on this issue and we recognise that views differ widely across the market. Taking this into account we have devised a solution that meets the concerns and issues raised,” said Alexander Justham, FSA Director of Markets.
The FSA will publish a policy statement in September, along with draft rules to implement the policy. Final rules will be issued in February 2009.
UK regulator demands greater disclosure on CFDs
- By: James Langton
- July 2, 2008 July 2, 2008
- 09:50