Ƶ

Short Sale Agreement for the United Kingdom

Short Sale Agreement Template for England and Wales

A Short Sale Agreement is a legally binding document governed by English and Welsh law that establishes the terms and conditions under which one party agrees to sell securities they do not own, with the intention of buying them back at a lower price. The agreement covers crucial aspects such as settlement procedures, margin requirements, default provisions, and regulatory compliance requirements under UK financial services legislation. It includes specific provisions for disclosure, risk management, and market conduct as required by the FCA and relevant UK regulations.

Your data doesn't train Genie's AI

You keep IP ownership of your information

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Download a Standard Template

4.6 / 5
4.8 / 5
Access for free
OR

Alternatively: Run an advanced review of an existing
Short Sale Agreement

Let Ƶ's market-leading legal AI identify missing terms, unusual language, compliance issues and more - in just seconds.

What is a Short Sale Agreement?

The Short Sale Agreement is essential in financial markets where parties engage in short selling activities. This document, governed by English and Welsh law, is typically used when an investor or trader wishes to profit from a anticipated decline in a security's price. The agreement outlines the complete framework for the short sale transaction, including borrowing arrangements, settlement terms, margin requirements, and regulatory compliance obligations. It must comply with UK financial services regulations, particularly the Financial Services and Markets Act 2000 and FCA requirements. The Short Sale Agreement is crucial for risk management and establishing clear legal obligations between all involved parties.

What sections should be included in a Short Sale Agreement?

1. Parties: Identification of the parties entering into the agreement

2. Background: Context and purpose of the short sale agreement

3. Definitions: Key terms used throughout the agreement

4. Sale Terms: Specific terms of the short sale, including price and quantity

5. Settlement Provisions: Terms for settling the short sale transaction

6. Representations and Warranties: Statements of fact and assurances from both parties

7. Governing Law: Specification of applicable law and jurisdiction

What sections are optional to include in a Short Sale Agreement?

1. Margin Requirements: Terms for maintaining margin requirements when dealing with leveraged transactions

2. Default Provisions: Consequences of default by either party, recommended for higher risk transactions

3. Broker Arrangements: Terms relating to broker involvement when a broker is part of the transaction

What schedules should be included in a Short Sale Agreement?

1. Schedule 1 - Securities Details: Detailed information about the securities being sold short

2. Schedule 2 - Calculation Methods: Methods for calculating prices, margins, and other financial terms

3. Appendix A - Required Notices: Forms and formats for required notices between parties

4. Appendix B - Compliance Requirements: Specific regulatory compliance requirements and procedures

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

England and Wales

Publisher

Ƶ

Document Type

Purchase Agreement

Cost

Free to use
Relevant legal definitions
































Clauses




























Industries

Financial Services and Markets Act 2000 (FSMA): Primary legislation that regulates financial services and markets, sets requirements for authorized persons conducting regulated activities, and is particularly relevant for short selling activities

Short Selling Regulation (EU) No 236/2012: Post-Brexit retained law that regulates disclosure requirements and sets rules for naked short selling

Financial Services Act 2012: Contains amendments to FSMA, provisions regarding market manipulation, and regulatory framework updates

Financial Services and Markets Act 2000 (Market Abuse) Regulations 2016: Implements market abuse regulations and defines prohibited practices in financial markets

UK Companies Act 2006: Covers share transfer provisions, corporate governance requirements, and directors' duties

Law of Property (Miscellaneous Provisions) Act 1989: Part of contract law fundamentals, setting out requirements for contracts relating to property and interests in land

FCA Handbook: Regulatory guide containing Conduct of Business Sourcebook (COBS), Market Conduct rules, and client classification requirements

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

Find the exact document you need

Stock Purchase Agreement Form

An England & Wales legal document detailing terms for company share transfers in M&A transactions.

find out more

Standard Purchase Agreement

An England & Wales contract documenting the sale and purchase of goods, detailing terms and legal compliance.

find out more

Simple Stock Purchase Agreement

An England & Wales legal document facilitating straightforward share transfers with essential terms and protections.

find out more

Residential Real Estate Contract

An England & Wales legal document detailing terms for transferring residential property ownership between parties.

find out more

Purchase Sale Contract

An England & Wales legal document outlining terms for the sale of goods, ensuring compliance and protecting parties' interests.

find out more

Purchase Agreement Letter

An England & Wales document confirming purchase terms between buyer and seller for goods or services.

find out more

Purchase Agreement Extension

An England & Wales legal document extending a purchase agreement's term with updated terms and conditions.

find out more

Probate Purchase Agreement

An England & Wales legal document facilitating estate asset transactions before probate is granted.

find out more

Private Sale Purchase Agreement

An England & Wales legal document detailing terms of a private sale, ensuring clarity and protection for parties involved.

find out more

Personal Property Purchase Agreement

An England & Wales legal document detailing the sale and transfer of personal property ownership.

find out more

Owner To Owner House Sale Contract

An England & Wales legal document facilitating direct property sales between owners, ensuring compliance with property laws.

find out more

Option To Purchase Contract

An England & Wales legal document granting future property purchase rights under specified conditions.

find out more

Offer And Agreement To Purchase Mobile Home

An England & Wales legal document for transferring mobile home ownership, detailing terms and protecting involved parties.

find out more

Mobile And Manufactured Home Purchase Agreement And Sales Contract

An England & Wales contract for buying and selling mobile or manufactured homes, ensuring legal compliance.

find out more

Manufactured Home Purchase Agreement

An England & Wales legal document for transferring ownership of a manufactured home, ensuring compliance with relevant legislation.

find out more

Letter Of Sales Agreement

An England & Wales document formalizing sales terms, including product details and pricing, without a full contract.

find out more

Lease With Option To Buy Commercial Property

An England & Wales legal document allowing businesses to lease with an option to purchase commercial property.

find out more

Lease Contract Buy Out Agreement

An England & Wales legal document outlining terms for early lease termination and compensation agreement.

find out more

Land Sell Agreement Form

An England & Wales legal document detailing the transfer of land ownership between seller and buyer.

find out more

Earnest Money Form

An England & Wales legal document outlining family asset distribution and management across generations.

find out more

Dealer Purchase Agreement

An England & Wales legal document resolving disputes through negotiation, preserving business relationships and avoiding litigation.

find out more

Cross Purchase Agreement

An England & Wales legal document modifying divorce terms, requiring court approval for financial or child-related changes.

find out more

Contract For Selling A Car Privately

An England & Wales legal document formalizing private accident settlements, detailing compensation, liability, and confidentiality terms.

find out more

Commercial Letter Of Intent To Purchase

An England & Wales agreement defining business interactions, performance metrics, and accountability between organizations.

find out more

Buy Tenancy Agreement

An England & Wales legal document granting authority for property management and transactions.

find out more

Agreement To Sell Personal Property

An England & Wales document recording fax transmission details for legal and compliance purposes.

find out more

Agreement For Sale And Agreement Of Sale

A legally binding contract under English and Welsh law documenting the terms and conditions of a property or asset sale between parties.

find out more

Commercial Real Estate Contract Form

A legally binding contract form for commercial property transactions in England and Wales, outlining terms and conditions of sale.

find out more

Land Selling Agreement Letter

A formal letter agreement used in England and Wales to document the terms and conditions of a property sale between parties.

find out more

Software Source Code Purchase Agreement

A legal agreement under English and Welsh law for the purchase and transfer of software source code ownership, including all associated intellectual property rights and documentation.

find out more

Option Purchase Contract Car

A contract under English and Welsh law granting the right to purchase a specified vehicle at a predetermined price within an agreed timeframe.

find out more

Gas Station Purchase Agreement

A legal agreement under English and Welsh law for the purchase and sale of a gas station business, including property and associated assets.

find out more

Mobile Home Park Purchase Agreement

A legal agreement under English and Welsh law for the purchase and sale of a mobile home park, including transfer of land, licenses, and existing tenant obligations.

find out more

Semi Truck Purchase Agreement Form

A legal agreement for semi-truck sales and purchases under English and Welsh law, detailing transaction terms and conditions.

find out more

Horse Lease Agreement With Option To Purchase

An English law agreement setting out terms for horse leasing with a future purchase option.

find out more

Commercial Real Estate Purchase Agreement Form

A legal agreement for commercial property sales under English and Welsh law, defining terms and conditions of the transfer.

find out more

New Construction Purchase Agreement

A legally binding agreement under English and Welsh law for the purchase of newly constructed property, setting out construction specifications, warranties, and completion terms.

find out more

Contract For Selling A House Privately

A contract under English and Welsh law for the private sale of residential property between seller and buyer without estate agent involvement.

find out more

New Construction Purchase And Sale Agreement

A legally binding agreement under English and Welsh law governing the sale of newly constructed properties from developers to purchasers.

find out more

Contract For Selling A House By Owner

An English and Welsh law contract for direct property sale between owner and buyer without estate agent involvement.

find out more
See more related templates

ұԾ’s Security Promise

Genie is the safest place to draft. Here’s how we prioritise your privacy and security.

Your documents are private:

We do not train on your data; ұԾ’s AI improves independently

All data stored on Genie is private to your organisation

Your documents are protected:

Your documents are protected by ultra-secure 256-bit encryption

We are ISO27001 certified, so your data is secure

Organizational security:

You retain IP ownership of your documents and their information

You have full control over your data and who gets to see it