March 23, 2020 / 6:38 PM / 11 days ago

UK watchdog says short-sellers not to blame for market rout

FILE PHOTO: City workers make phone calls outside the London Stock Exchange in Paternoster Square in the City of London, Britain, October 1, 2008. REUTERS/Toby Melville

LONDON (Reuters) - Britain’s financial markets have stayed orderly during the recent significant market volatility, and there is no evidence that short-sellers are the driver of a market rout, the Financial Conduct Authority said on Monday.

While some European Union states have temporarily banned short-selling, the FCA said that it, most European countries and the United States have not introduced such curbs.

“Aggregate net short selling activity reported to FCA is low as a percentage of total market activity and has decreased in recent days. It will continue to fluctuate, but there is no evidence that short selling has been the driver of recent market falls,” the FCA said.

Reporting by Huw Jones; Editing by Hugh Lawson

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