The UK Financial Conduct Authority (FCA) is implementing temporary measures for the reporting of the short selling indicator in transaction reports while it consider changes to the UK transaction reporting regime.

Transaction reports submitted to the FCA under UK MiFIR must contain a designation to identify a short sale. This information is contained in the short selling indicator (RTS 22, field 62).

The regulator explains that it is in the early stages of considering policy options for the UK MiFIR transaction reporting regime, including, but not limited to, the future of the short selling indicator.

The watchdog says it has received questions from firms regarding the requirement in Article 26(7) of UK MiFIR to correct errors and omissions in the short selling indicator field and resubmit affected transaction reports.

“Until the future of the short selling indicator field (for the purposes of the UK MiFIR transaction reporting regime) has been determined, we will not take action against firms who do not meet these requirements. We do not expect firms to notify us about issues affecting the short selling indicator field through an errors and omissions notification form. We will keep this position under review,” the FCA says.