Short selling is allowed only at a price higher than the latest market price. Japan: The Financial Services Agency (FSA) oversees short selling in Japan.Short selling is only allowed for designated securities and must be backed by borrowed shares. Hong Kong: The Securities and Futures Commission (SFC) regulates short selling in Hong Kong.Generally, the regulations are similar to those of the EU. United Kingdom: The United Kingdom's Financial Conduct Authority (FCA) is the regulatory body overseeing short selling.
The EU has a two-tier model, where positions exceeding 0.2% of issued shares must be disclosed to regulators, and those exceeding 0.5% must be publicly disclosed. European Union: In the European Union (EU), the European Securities and Markets Authority (ESMA) oversees short selling.