FCA Handbook - SSR 5 Market maker and stabilisation exemptions

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SSR 5.1 Application

This chapter provides an exemption from SSR 2.3.1R and SSR 3.3.1R where:

(1) short selling activity is performed due to market making activities in accordance with SSR 5.4.1R; or
(2) a person carrying out a stabilisation:
1. (a) enters into a short sale of an admitted share; or
2. (b) has a net short position.

SSR 5.2 Purpose

This chapter sets out rules and guidance relating to the exemptions available for market making activities and stabilisation in accordance with regulation 9(1) of the Short Selling Regulations 2025.

SSR 5.3 The stabilisation exemption

SSR 2.3.1R and SSR 3.3.1R do not apply to a person who enters into a short sale of an admitted share or has a net short position in relation to the carrying out of a stabilisation in accordance with regulation 5(4) and (5) of the Market Abuse Regulation and Chapter III of the Buy-Back and Stabilisation Regulation.

SSR 5.4 The market maker exemption

Subject to the provisions in this chapter (including in particular SSR 5.5 and SSR 5.6), SSR 2.3.1R and SSR 3.3.1R do not apply to short selling activity when performed due to market making activities, provided that the person performing market making activities is:

(1) an investment firm, credit institution or overseas entity (acting as an investment firm or credit institution in that jurisdiction); and
(2) a member of:
1. (a) a UK trading venue; or
2. (b) a trading venue in a country or jurisdiction other than the UK designated under Part 3 of the Short Selling Regulations 2025.

The exemption provided in SSR 5.4.1R for the purposes of SSR is called the market maker exemption.

SSR 5.5 Notification requirement for new users or previously prohibited users of the market maker exemption

(1) The market maker exemption will not apply unless the person intending to use it has first given the FCA 15 calendar days’ notice of their intention to use the market maker exemption using the notification template in SSR 5 Annex 1R.
(2) A person is not required to give 15 calendar days’ notice under (1) where that person has:
1. (a) already notified the FCA under (1); and
2. (b) has not subsequently:
  1. (i) notified the FCA under SSR 5.7.1R(1) to remove the market maker exemption; or
  2. (ii) been prohibited from using the market maker exemption under SSR 5.8.1R.
(3) Where the FCA receives a notification under (1), the market maker exemption will take effect upon either:
1. (a) subject to (4), the elapsing of 15 calendar days from the date the FCA receives a complete notification; or
2. (b) the FCA issuing a non-objection notice that it will not use its powers to prohibit the use of the market maker exemption in SSR 5.8.1R,
3. whichever is the earlier.
(4) Where the FCA has issued a notification proposing to prohibit under SSR 5.9 in accordance with SSR 5.8, the market maker exemption will not take effect until it subsequently issues a non-objection notice.

(1) Further to SSR 5.5.1R, having received a complete notification including all the information specified in SSR 5 Annex 1R, the FCA will consider whether the notifying person meets the conditions to utilise the market maker exemption under SSR 5.4.1R within 15 calendar days from the day on which the complete notification is received, with a view to determining whether to prohibit the use of the market maker exemption by the person concerned under SSR 5.8.1R.
(2) If the FCA is satisfied that the notification contains the complete information and demonstrates that the conditions of the market maker exemption specified in SSR 5.4.1R are met, the FCA will provide a non-objection notice to the notifying person within 15 calendar days from the day on which the complete notification was received.
(3) If the FCA is not satisfied that the notification submitted in accordance with SSR 5 Annex 1R meets the conditions of the market maker exemption specified in SSR 5.4.1R, the FCA will follow the procedure in SSR 5.9.
(4) If the notification submitted is incomplete, the FCA will inform the notifying person and will consider the notification within the timeframe specified in (1) from the date the missing information is received
(5) The FCA aims to respond to all notifications as soon as possible. While the FCA aims to inform the notifying person of its determination within 15 calendars days from the day on which a complete notification is received, if the FCA is satisfied that a notification meets the conditions of the market maker exemption, it will provide a written non-objection notice to the notifying person before the expiry of 15 calendar days.

A notification under SSR 5.5.1R(1) must be submitted to the FCA via means specified on the short selling section of the FCA website.

SSR 5.6 Annual attestation requirement for market maker exemption users

A person who:

(1) has notified the FCA under SSR 5.5.1R(1); and
(2) has not:
1. (a) notified the FCA under SSR 5.7.1R(1); or
2. (b) been prohibited from using the market maker exemption under SSR 5.8.1R,
must submit to the FCA the attestation form in SSR 5 Annex 2R.

A person subject to SSR 5.6.1R must submit the attestation form in SSR 5 Annex 2R annually, by the first working day of June.

An attestation made under SSR 5.6.2R must be signed by a senior person who is the person responsible for the entity’s regulatory obligations in relation to short selling for its market making activities.

(1) A person who intends to submit the attestation form in SSR 5 Annex 2R is encouraged to do so ahead of the first working day of June.
(2) In accordance with SSR 5.7.1R(1)(c) and (2), a person who is unsure about whether they meet the conditions of the market maker exemption should contact the FCA via email to the address specified on the short selling section of the FCA website as early as possible.

An attestation form required under SSR 5.6.1R must be submitted to the FCA via means specified on the short selling section of the FCA website.

The FCA will provide an acknowledgement of receipt to the attesting person within 15 calendar days from the day on which the attestation form in SSR 5 Annex 2R was received.

Persons who do not provide an annual attestation

(1) Where a person does not provide an attestation, the FCA will take this as an indication that the person no longer considers themselves to qualify for the market maker exemption.
(2) Without prejudice to any other action available to the FCA, where a person does not provide an attestation in accordance with SSR 5.6.1R, the FCA will initiate the process to prohibit use of the market maker exemption as set out in SSR 5.9.1G and modified by SSR 5.9.2G.

SSR 5.7 Requirement to notify a change in circumstances and update contact details

(1) A person to whom the market maker exemption applies must notify the FCA as soon as practicable if:
1. (a) they no longer need the market maker exemption; or
2. (b) they have concluded that they no longer meet the conditions for the market maker exemption; or
3. (c) they become aware of changes in their circumstances which may affect their eligibility to meet the conditions for the market maker exemption.
(2) When notifying the FCA further to (1)(a), (b) or (c), a person must contact the FCA via means specified on the short selling section of the FCA website.

If a notice under SSR 5.7.1R(1)(a) or (b) is submitted, the market maker exemption will cease to apply to the notifying person upon receipt of the notification by the FCA.

The FCA will issue a confirmation of receipt of a notification received under SSR 5.7.1R(1)(a) or (b).

With respect to a notification under SSR 5.7.1R(1)(c), the FCA will consider whether the person still qualifies for the market maker exemption and will either:

(1) confirm that, in the FCA’s opinion, the person concerned still qualifies for the exemption; or
(2) confirm that, in the FCA’s opinion, the person concerned does not qualify for the exemption, and issue a notification proposing to prohibit under SSR 5.8.1R.

The FCA aims to respond to a notification under SSR 5.7.1R(1)(c) within 15 calendar days of receipt of the notification.

If a person notifying the FCA under SSR 5.7.1R(1)(c) subsequently considers that they do not qualify for the market maker exemption – for instance, on receipt of a notification proposing to prohibit – that person should submit a notification under SSR 5.7.1R(1)(a) or (b) to terminate the application of the market maker exemption.

Updating contact details

A person to whom the market maker exemption applies must notify the FCA, via means specified on the short selling section of the FCA website, as soon as practicable when the contact details previously provided by the person in SSR 5 Annex 1R change.

SSR 5.8 Arrangements for the prohibition of market maker exemptions: rejecting notifications or otherwise

The FCA may decide to prohibit the use of the market maker exemption if it is not satisfied that the person using or intending to use the market maker exemption satisfies the conditions in SSR 5.4.1R.

In deciding whether to prohibit the use of the market maker exemption, the FCA will consider whether the person concerned has adequately responded to information requests under SSR 5.11.1R.

The FCA may use the power in SSR 5.8.1R at any time – including, for example:

(1) after receipt of notice under SSR 5.5.1R;
(2) after receipt of notice under SSR 5.7.1R(1)(c);
(3) following a thematic review; or
(4) following ad hoc supervisory processes, such as an information request under SSR 5.11.1R.

The FCA may take into account the organisational expectations set out in SSR 5.10.1G when satisfying itself that a person is capable of meeting the conditions of the market maker exemption.

In satisfying itself that the short selling activity for which the market maker exemption is claimed constitutes market making activity within the scope of the exemption, the FCA may have regard to the guidance on market making activities under SSR 5.13 to SSR 5.19.

When a prohibition decision under SSR 5.8.1R is issued to a person, the market maker exemption will cease to apply with respect to that person on the date specified in the notice decision.

If a person is prohibited from using the market maker exemption, a new notification under SSR 5.5.1R would be required to use it subsequently, as set out in SSR 5.5.1R(2)(b)(ii).

SSR 5.9 Procedure for using the prohibition power

(1) If the FCA considers that a notifying person does not satisfy the criteria to use the market maker exemption, the FCA will inform the notifying person via written notice of the reasons why it is proposing to prohibit the notifying person from using the market maker exemption.
(2) The notifying person will be given the opportunity to make written representations to the FCA in response to the notice concerning their use of the market maker exemption.
(3) The FCA will decide whether to prohibit the notifying person’s use of the market maker exemption, having regard to the notifying person’s notification and any written representations. The decision to prohibit the use of the market maker exemption will be made by senior staff members of the FCA who were not involved in the initial consideration of the notification, and will be communicated to the person as a further written notice.
(4) If the notifying person is not satisfied with the FCA’s decision to prohibit their use of the market maker exemption, they may seek a review of the decision. This will be conducted by at least 3 senior staff members of the FCA. None of the staff conducting the review will have been connected with the earlier decision taken in respect the notifying person’s use of the market maker exemption. The outcome of the review will be determined within 3 months of the decision referred to in (3) and will be communicated to the person as a final written notice.

Procedure for using the prohibition power for persons not providing an attestation

Where a person does not provide an attestation under SSR 5.6.1R, the process in SSR 5.9.1G applies as modified below:

(1) The notice under SSR 5.9.1G(1) will specify that, in accordance with SSR 5.6.6G, the FCA has taken the person’s failure to provide the attestation required by SSR 5.6.1R as an indication that the person no longer considers themselves to qualify for the market maker exemption and has therefore initiated the procedure to prohibit their use of the market maker exemption.
(2) The person will be given only 15 calendar days to make written representations to the FCA in response to the notice.
(3) Where the person does not respond to the notice within the period of 15 calendar days, the FCA will decide to prohibit the notifying person’s use of the market maker exemption.
(4) The decision to prohibit the use of the market maker exemption in these circumstances will be made by a senior staff member of the FCA.

For the avoidance of doubt, if the person does respond to the notice issued under SSR 5.9.1G(1) within the period of 15 calendar days, the procedure in SSR 5.9.1G(3) and (4) then applies.

SSR 5.10 Organisational considerations for a person using the market maker exemption

(1) Where the market maker exemption applies to a person in respect of the market making activities notified to the FCA, the FCA expects that person to put in place the following arrangements to demonstrate effective application of the market maker exemption and to ensure they are able to meet their obligations under SSR in relation to their short selling activities not covered by the exemption – in particular, position reporting and covering requirements:
1. (a) comply with the general rules and particular requirements for market making activities imposed by the trading venue or an equivalent trading venue overseas designated under Part 3 of the Short Selling Regulations 2025, where applicable;
2. (b) implement internal procedures with respect to the market making activities for which it claims the market maker exemption that allow these activities to be immediately identified and the records made readily available to the FCA upon request;
3. (c) maintain records of orders and transactions relating to its market making activities for which it requests the market maker exemption so that they can be easily distinguished from its proprietary trading activities; and
4. (d) possess effective compliance and audit resources and a framework to enable it to monitor the market making activities for which it requests the market maker exemption.
(2) If a person is not able to demonstrate that it has put in place the arrangements described in (1), the FCA may not be satisfied that the person is able to meet the conditions of the market maker exemption – in particular, that the person concerned is able, operationally, to separate the market making activities (including the particular financial instruments) in respect of which the market maker exemption applies from its short selling activities to which the exemption does not apply.
(3) The FCA would expect a person using the market maker exemption to maintain adequate records to be able to demonstrate correct application of the exemption for a period of up to 5 years.

SSR 5.11 Information requests by the FCA

(1) The FCA may require a person using the market maker exemption to provide to the FCA, in writing:
1. (a) information, including about positions held or activities conducted under that exemption; or
2. (b) other information, to demonstrate their compliance with the conditions of the market maker exemption.
(2) The FCA may specify the manner in which, and the date by which, such information is to be provided.
(3) This rule applies without prejudice to the generality of the FCA’s powers to request information under regulation 25 of the Short Selling Regulations 2025.

A requirement under SSR 5.11.1R(1) may, among other things, include information about a market maker’s correct application of the market maker exemption, including:

(1) the financial instruments for which the market maker exemption is being utilised;
(2) the market making activities that are being performed in those financial instruments, including those set out in SSR 5.13 to SSR 5.19;
(3) records of orders and transactions in relation to the person’s market making activities that can easily be distinguished from its proprietary trading activities;
(4) evidence that the person is a member of a UK trading venue or a trading venue in a country or jurisdiction other than the UK designated under Part 3 of the Short Selling Regulations 2025;
(5) evidence that the person is an investment firm or credit institution (including the equivalent in an overseas jurisdiction);
(6) whether and how the person is complying with the market making rules on a trading venue;
(7) whether and how the guidance in SSR 5.13 to SSR 5.19 is being followed for the financial instruments for which the market maker exemption is being utilised in relation to the type of market making activity which is being undertaken; and
(8) whether the market maker is registered on a trading venue as a market maker for the financial instrument(s) for which they are using the market maker exemption.

SSR 5.12 Arrangements for publishing the list of market makers

Pursuant to regulation 9(4) of the Short Selling Regulations 2025, the FCA will publish and maintain a list of persons using the market maker exemption in a downloadable form on the short selling section of the FCA website as specified in SSR 5 Annex 3G.

SSR 5.13 Guidance on the performance of market making activities

For the purposes of SSR, market making activities is defined in the Glossary by reference to the Short Selling Regulations 2025. That definition provides that, in accordance with regulation 9(5)(c) of the Short Selling Regulations 2025, market making activities means the activities of an investment firm, a credit institution or an overseas entity where it deals as principal in a financial instrument, whether traded on or outside a trading venue, in any of the following capacities:

(1) by posting firm, simultaneous 2-way quotes of comparable size and at competitive prices, with the result of providing liquidity on a regular and ongoing basis to the market (paragraph (a) of the Glossary definition of market making activities; regulation 9(5)(c)(i) of the Short Selling Regulations 2025);
(2) as part of its usual business, by fulfilling orders initiated by clients or in response to clients’ requests to trade (paragraph (b) of the Glossary definition of market making activities; regulation 9(5)(c)(ii) of the Short Selling Regulations 2025); or
(3) by hedging positions arising from the fulfilment of tasks under (1) or (2) (paragraph (c) of the Glossary definition of market making activities; regulation 9(5)(c)(iii) of the Short Selling Regulations 2025).

As set out in SSR 5.4.1R, the market maker exemption is an activity-based exemption.

Market making activities may be carried out in a financial instrument other than an admitted share, including but not limited to derivatives.

The market maker exemption only applies to short selling activity carried out for the purpose of market making activities. It does not apply to the person’s proprietary trading, which is subject to SSR 2 and SSR 3.

(1) Arbitrage activities are not considered market making activities and are, therefore, not subject to the market maker exemption.
(2) The activities specified in (1) also include those arbitrage activities executed between different financial instruments but with the same underlying admitted share.

Persons performing market making activities are expected to not hold significant short positions other than for brief periods.

SSR 5.14 Guidance on activities that fall within paragraph (a) of the Glossary definition of market making activities: posting firm, simultaneous 2-way quotes

To demonstrate that a person’s market making activities involve posting firm, simultaneous 2-way quotes, a person should provide evidence upon request from the FCA that it follows SSR 5.14.2G to SSR 5.17.

(1) Regarding the reference to ‘providing liquidity on an ongoing basis’ in the Glossary definition of market making activities, a person undertaking market making activities should be present on the order book or be posting quotes on a trading venue for the relevant financial instruments in respect of which it is relying on the market maker exemption for a sufficient proportion of the mandatory trading period. In this regard, for the purposes of SSR, paragraph (a) of the Glossary definition of market making activities does not require an uninterrupted presence, though it provides that the presence should be regular and ongoing.
(2) Presence on the market should consist of:
1. (a) conducting market making activities each day the market is open; and
2. (b) submitting orders that meet the criteria in SSR 5.15.1G, SSR 5.16.1G and SSR 5.17.1G according to a reasonable frequency – that is, not interrupting the person’s market making activity for a significant period of time during a single trading session.

As regards ‘posting firm, simultaneous 2-way quotes of comparable size and at competitive prices’ within paragraph (a) of the Glossary definition of market making activities, for the purposes of SSR:

(1) the FCA considers that the bid–ask range proposed by the person conducting market making activities can be asymmetrical, in that it can be moved away from the central point of the market bid–ask range being posted for the relevant financial instrument;
(2) the competitiveness of the prices can be different on bid and ask at a given time according to the directional side of the person’s strategy, as long as the person undertaking market making activities complies with the aim of providing liquidity to the market; and
(3) in any case, the potential asymmetry should not result in either the bid or the ask price not being competitive.

SSR 5.15 Guidance on the application of paragraph (a) of the Glossary definition of market making activities to liquid shares

Taking into account SSR 5.14.2G for admitted shares qualifying as liquid shares:

(1) A regular and ongoing presence on the market would, in the FCA’s view, mean that market making activities should be undertaken on either a monthly or daily basis for at least 80% of the overall trading time. This time presence may be reduced in cases of abnormal market situations as defined under the rules of the relevant trading venue. For those liquid shares whose price is determined solely by auction on a trading venue, the concept of regular and ongoing time presence does not have a meaning comparable to that prevailing for those shares for which trading is carried out on a continuous basis. In such cases, the regular and ongoing presence criterion will be assessed at least against the standards defined for market makers/liquidity providers in the admitted share by rules of the trading venue where the instrument is admitted to trading. To rely on the market maker exemption for these admitted shares, the person should issue competitive buy and sell orders during the pre-opening auction call phase such that their quotes are present when the auction concludes and the closing price for the instrument is determined.
(2) Competitive prices should be within the maximum bid/offer spreads that are required from market makers/liquidity providers recognised under the rules of the trading venue where they are posted for the relevant admitted share. In cases where that trading venue does not provide for rules on maximum bid/offer spreads for market makers or liquidity providers, reference can be made to the requirements laid down in the rules for market makers/liquidity providers by another trading venue where the relevant admitted share is actively traded. Where this alternative is not possible, as a last resort, competitive price is to be measured as a proportion of the average spread observed on the concerned admitted share in the venue where the admitted share is traded. Any asymmetry between the prices of bids and offers will be considered in light of the guidance in SSR 5.14.3G.
(3) The size of the orders posted by market makers on the order or quote book should not be smaller than those required from market makers/liquidity providers recognised under the rules of the trading venue where the admitted shares concerned are traded. In cases where that trading venue does not provide for rules on order or quote size for recognised market makers or liquidity providers, reference can be made to the requirements laid down in the rules for market makers/liquidity providers by another trading venue where the concerned admitted share is actively traded. Where this alternative is not possible, as a last resort, the size of the orders or quotes issued in the market making capacity should be assessed in relation to the average trading size for the concerned admitted share.

SSR 5.16 Guidance on the application of paragraph (a) of the Glossary definition of market making activities to shares that are not liquid shares and equity derivatives traded on a trading venue

(1) For admitted shares that do not qualify as liquid shares and for equity derivatives traded on a trading venue:
1. (a) whether someone has a regular and ongoing presence on the market should be assessed against the standards defined in the rules of the trading venue where the admitted share and equity derivative is admitted to trading for recognised market makers/liquidity providers of such instruments;
2. (b) competitive prices should be within the maximum bid/offer spreads for market markers/liquidity providers as laid down by the trading venue, and any asymmetry between the prices of bids and offers will be considered in light of the guidance in SSR 5.14.3G; and
3. (c) the size of the orders should not be significantly smaller than what is required from market makers/liquidity providers recognised under the rules of the trading venue where the concerned admitted shares and equity derivatives are traded.
(2) For admitted shares which are not liquid shares, where the trading venue referred to in (1) does not provide for rules on one of the criterion set out in (1)(b) and (c) for market makers or liquidity providers, reference can be made to the requirements laid down in the rules for market makers/liquidity providers by another trading venue where the concerned admitted share is actively traded.
(3) Where such an alternative is not possible, as a last resort and depending on the concerned criteria:
1. (a) competitive prices should be measured as a proportion of the average spread observed on the concerned admitted share in the trading venue where the admitted share is traded or, ultimately, should be within the maximum bid/offer spreads laid down by the trading venue; and
2. (b) the size of the orders or quotes issued in the market making capacity should be assessed in relation to the average trading size for the concerned admitted share on the trading venue where it is traded.
(4) For equity derivatives, where the trading venue referred to in (1) does not provide for rules referred to in (1)(a) to (c) for market makers or liquidity providers, a person may refer to the relevant requirements laid down in the rules for market makers/liquidity providers by another trading venue where a similar equity derivative contract is actively traded, if any.

A person may demonstrate that it meets the criteria in SSR 5.16.1G by reference to historical trading.

SSR 5.17 Information that may demonstrate that a person is carrying on market making activity falling within paragraph (a) of the Glossary definition of market making activities

(1) Where a person is party to a market making or liquidity provision contract or programme with a trading venue or a company which meets or exceeds the criteria in relation to:
1. (a) presence;
2. (b) competitive prices; and
3. (c) order size,
4. that will be strong evidence, but not in and of itself conclusive, that the person is carrying on market making activities for the purposes of SSR 5.4.1R.
(2) Where a person is not party to a contract or programme as described in (1), it should provide evidence upon request from the FCA that it meets the criteria set out in relation to presence, competitive prices and order size and the activities within the Glossary definition of market making activities.

To demonstrate that a person is carrying on market making activities in respect of a financial instrument for the purposes of the FCA considering whether that person meets the conditions for the market making exemption, a person notifying under either SSR 5.5.1R should be able to provide additional information or evidence upon request from the FCA, in particular:

(1) evidence of the comparable size of orders;
(2) evidence of the competitive prices of orders; and
(3) evidence of their regular and ongoing presence on the market.

SSR 5.18 Guidance on market making activities that fall within paragraph (b) of the Glossary definition of market making activities: as part of its usual business

To demonstrate that a person’s market making activities involve, as part of its usual business, fulfilling orders initiated by clients or in response to client’s request for trade, a person should provide evidence upon request from the FCA that it:

(1) regularly provides prices to clients or maintains the ability to provide a quote in response to client demand; and
(2) stands ready to trade with clients upon request.

(1) Further to SSR 5.18.1G, the FCA will consider whether, and to what extent, the person already deals on a frequent and systematic basis in the financial instrument for which the person is using the market maker exemption, when fulfilling client orders or responding to clients’ requests.
(2) If the market making activity is performed in financial instruments that are traded on an ad-hoc and infrequent basis, it is decisive if the person is at all business times ready and prepared to provide prices to clients and stands ready to trade in response to clients’ requests with a reasonable expectation to trade in any financial instrument requested by a client.
(3) A presentation of the underlying business strategy could be used as relevant evidence to support eligibility of a person’s activity under paragraph (b) of the Glossary definition of market making activities for the market maker exemption; this presentation should include:
1. (a) the scale of that activity (for which the market maker exemption is being notified) in comparison to the overall proprietary trading of the entity;
2. (b) where the person does not yet deal on a frequent and systematic basis in the relevant financial instrument to fulfil client orders or to respond to clients’ requests:
  1. (i) whether it has a reasonable expectation that it will do so in the future;
  2. (ii) the basis for that expectation;
  3. (iii) the business assumptions that justify it (including in relation to its dealing for clients in other financial instruments); and
  4. (iv) whether reasonable expectation of dealing in a particular financial instrument can be referred to in a notification to the FCA.

SSR 5.19 Guidance on market making activities that fall within paragraph (c) of the Glossary definition of market making activities: hedging

To qualify for the market maker exemption for hedging activities within paragraph (c) of the Glossary definition of market making activities for the purposes of SSR, either:

(1) the size of the position acquired for the purpose of hedging should be proportionate to the size of the exposure hedged; or
(2) if the size of the position acquired for the purpose of hedging is not proportionate to the size of the exposure hedged, the person relying on paragraph (c) of the Glossary definition of market making activities should be able to justify, upon request from the FCA, why an exact match is not possible,
and, in both cases, any discrepancy between the size of position acquired for the purpose of hedging and the size of the exposure hedged should be insignificant.

In the context of undertaking market making activities within paragraph (c) of the Glossary definition of market making activities, persons may undertake short selling activity in admitted shares to:

(1) hedge risk from their market making activities in the same or in a different share for which the FCA has made a determination under SSR 4; or
(2) hedge risk from their market making activities in other financial instruments (such as equity derivatives or bonds related to that share).

Anticipatory hedging

(1) A person dealing as principal in anticipation of client orders or requests expected to materialise in the near term can benefit from the market maker exemption to the extent that the anticipated hedging is necessary for the performance of actual market making activities and is not carried out on other grounds, such as speculative trading.
(2) Should the anticipated client orders or requests to quote not be received, the position accumulated through anticipatory hedging should be unwound in an expeditious and orderly manner (and in any event as soon as practicable).

The market maker must be able to demonstrate to the FCA on request that trading in anticipation of client orders or requests correlates with transactions carried out in performance of market making activities at any time.

SSR 5.20 Guidance on use of the market maker exemption and membership of a trading venue

A person to whom the market maker exemption applies may use that exemption for any of its market making activities:

(1) on the specific trading venue on which they are a member, or outside of that trading venue;
(2) without being recognised as a market maker or liquidity provider under the rules of the specific trading venue on which they are undertaking market making activities; or
(3) without a separate contractual obligation with the specific trading venue to carry out market making activities.

SSR 5 Annex 1 Information required for market maker registration

SSR-1 form - exemption notification by market makers

This exemption notification should be used by a person (‘notifier’) that is notifying the Financial Conduct Authority (FCA) of its intention to employ the exemption referred to in Regulation 9(5)(c) of the Short Selling Regulations 2025

1. Identity of the notifier
1.1. Full name (Full legal name of the notifier as it is registered)
1.2. Status (Mark relevant status with ‘X’)	Credit institution
	Investment firm
	Overseas entity (acting as an investment firm or credit institution in the relevant jurisdiction)
1.3. Address (Registered office; if registered office is not in UK, address for service in the UK)
1.4. Country
1.5. Phone number (Direct telephone number – include country code)
1.6. Email address and website URL
1.7. Bank identification code (BIC) (If applicable)
1.8. Firm reference number (FRN) (If applicable)
1.9. Legal entity identifier (LEI) (If applicable)
2. Contact or reporting person for the purpose of the exemption notification
2.1 Full name (Of the contact or reporting person)
2.2 Address
2.3 Phone number (Direct telephone number – include country code)
2.4 Email address (Individual work email address)
2.5 Role (Job title/functional relationship with notifier)

3. Exemption notification

3.1. Declaration:

The notifier mentioned in (1) notifies that:

• It meets the conditions of the exemption set out in SSR 5, specifically those in SSR 5.4.1R and the guidance in SSR 5.10 to SSR 5.19.
• It intends to perform market making activities as set out in, and in accordance with, the rules and guidance in SSR 5, and specifically in SSR 5.10, and in SSR 5.13 to SSR 5.19 inclusive.
• It will promptly communicate to the FCA any changes in circumstances affecting eligibility or continued use of the exemption in accordance with SSR 5.7.
• It will promptly communicate to the FCA any changes to contact details in accordance with SSR 5.7.7R.
• It will promptly respond to any requests for information from the FCA made under SSR 5.11 to demonstrate its compliance with the rules and guidance in SSR 5.

3.2. Please specify the market making activities performed according to Regulation 9(5)(c) of the Short Selling Regulations 2025:

3.3. Trading venue membership

Specify the name of the trading venue(s) of which the notifier is a member: (*)

(*) Attach evidence of membership or relevant link if appropriate.

3.4. The notifier mentioned in (1) intends to use the exemption referred to in Regulation 9(5)(c) of the Short Selling Regulations 2025 from (yyyy)/(mm)/(dd) (*)

(*) The exemption notification must be sent to the FCA at least 15 calendar days before the notifier intends to use the exemption.

4. Date of notification

(yyyy) / (mm) / (dd)

5. Signature

Name and signature of the notifier’s contact person or reporting person

(Signature here)

I am authorised to give this notification on behalf of the notifier

SSR 5 Annex 2 Annual attestation by market makers

SSR-2 form – annual attestation by market makers

Identity of the notifying market maker
1.1. Full name (Full legal name of notifier as it is registered)
Person making the attestation on behalf of the notifying market maker
2.1. Full name (Of the person making the attestation)
2.2. Address
2.3. Phone number (Direct telephone number – include country code)
2.4 Email address (Individual work email address)
2.5. Role (Job title/functional relationship with notifier)
Annual attestation
3.1. Declaration The notifier mentioned in (1) notifies that: • The firm is correctly applying the market maker exemption to its short selling activities, in accordance with the rules and guidance in SSR 5, and specifically SSR 5.4.1R, SSR 5.10, and SSR 5.13 to SSR 5.19 inclusive. • The firm continues to perform market making activities covered by the exemption and still requires the exemption for those activities. • It will promptly communicate to the FCA any changes in circumstances affecting eligibility or continued use of the exemption in accordance with SSR 5.7. • The contact details previously provided in SSR 5 Annex 1R remain correct and it will promptly communicate to the FCA any changes to contact details in accordance with SSR 5.7.7R. • It will promptly respond to any requests for information from the FCA made under SSR 5.11 to demonstrate its compliance with the rules and guidance in SSR 5.
4. Date of attestation	(yyyy) / (mm) / (dd)
5. Signature Name and signature of the notifier’s contact person or reporting person	(Signature here) I am authorised to give this notification on behalf of the notifier

SSR 5 Annex 3 List of market makers

SSR-3 form – list of market makers

Name of the notifying market maker	ID code (eg, legal entity identifier)