THE UK financial regulator has found no evidence that short sellers targeted British bank HBOS in a "concerted" effort to depress its share price, while the Irish regulator has said it is still examining unusual share trading in Anglo Irish Bank last March.

Both regulators launched investigations in March into the activity of short-sellers, who aim to benefit from stock values falling, after the share prices of HBOS and Anglo plummeted amid market rumours.

The London-based Financial Services Authority (FSA) said: "Despite the likelihood that the rumours contributed to the fall in the share price, the FSA has not uncovered evidence that they were spread as part of a concerted attempt by individuals to profit by manipulating the share price."

The Irish Financial Services Regulatory Authority said it was continuing its investigation into unusual share trading in Anglo Irish Bank on March 17th when the stock dropped 15 per cent.

The regulator is still pursuing several lines of inquiry that could lead to some form of reprimand. It is likely to issue guidelines to encourage stockbrokers to inform clients if they are passing on stock information based on rumour.

Trading in HBOS was temporarily suspended on March 19th after falling 17 per cent. The FSA has regulated short selling by introducing rules in June, forcing investors to disclose short positions of more than 0.25 per cent in companies involved in rights issues.