Home FCA Handbook SSR SSR 3 SSR 3.3 Arrangements for covering short sales so settlement can be effected when due
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SSR 3.3 Arrangements for covering short sales so settlement can be effected when due

13/07/2026R

A person may enter into a short sale of an admitted share only where one of the following conditions is fulfilled:

  1. (1) the person has:
    1. (a) borrowed the admitted share; or
    2. (b) made alternative provisions resulting in a similar legal effect so that settlement of the short sale can be effected when due;
  2. (2) the person:
    1. (a) has entered into an agreement to borrow the admitted share; or
    2. (b) has another absolutely enforceable claim under contract or property law to be transferred ownership of a corresponding number of securities of the same class so that settlement of the short sale can be effected when it is due; or
  3. (3) the person has an arrangement with a third party, as defined in SSR 3.5.7R, under which that third party has confirmed that:
    1. (a) the admitted share has been located; and
    2. (b) the third party has taken measures in relation to other third parties necessary for the person to have a reasonable expectation that settlement of the short sale can be effected when it is due.
13/07/2026G

Persons carrying out the short sale should fulfil the conditions for the agreements or arrangements in SSR 3.3.1R themselves, which may involve the person entering into an agreement or arrangement with another person within the same group. SSR 3.3.1R cannot be complied with by a person relying on an agreement or arrangement entered into by another person within the same group.