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Ban on uncovered short-selling could be set for scrapheap in government review

Restrictions could be loosened as part of government's de-regulatory drive

The government has asked for evidence on whether the restrictions for City firms are appropriate and working effectively to reduce risks
The government has asked for evidence on whether the restrictions for City firms are appropriate and working effectively to reduce risks Photo: Getty Images

The UK's ban on uncovered short positions has been thrust into the firing line as the government asks the City whether the rules are still appropriate after Brexit.

Uncovered or naked short-selling, where shorts sell shares without determining they can be borrowed first, potentially leading to short pressure over and above the tradeable shares in the market, is currently banned in the UK and many other global markets.

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