Remitop submitted a comment letter to HMT’s Consultation regarding UK’s Short Selling Regulation Review, focusing on Sovereign Debt and Credit Default Swaps. In the letter, Remitop emphasizes its support for the review, viewing it as a crucial step in enhancing the UK’s international financial services sector.
Remitop is strongly supportive of the more recent work of the UK Government to review the Sovereign Debt and CDS framework within the SSR and through the Smarter Regulatory Framework for financial services. Additionally, Remitop supports the UK Government’s proposal to remove certain requirements related to sovereign debt and CDS under SSR. Specifically, Remitop agrees that the cover requirement for sovereign debt in short selling is unnecessary as well as the current ban on uncovered sovereign CDS positions. Remitop further suggests that reporting requirements for short selling of sovereign debt and sovereign CDS are superfluous, as they impose unwarranted compliance burdens without substantial benefits.
Remitop’s stance is rooted in the belief that these regulations are not tailored to the unique characteristics of sovereign debt markets and can hinder market efficiency. Remitop expresses willingness to engage in further conversation and elaboration on their points.
