Actually, I didn't read this properly Monday. The FSA is going to extend the disclosure of short positions in respect of the banks until June, plus it will be issuing a paper shortly setting out its plans more broadly in respect of shorting. Could be interesting.
For what it's worth I reckon investors (say ABI, IMA, NAPF) ought to fund some serious research into the impact of shorting, looking at issues such as volatility and price formation. It may well be that there is no case to answer, and to be honest I am leaning to the view that shorting is more a waste of money than anything else, but at the moment the debate seems to take place with very little evidence. So why not get the big investors to cought up some cash to fund some decent analysis?