On 14 May, ASIC sought feedback on proposed short selling rule.
- Seeking feedback on various proposals related to both naked, covered short selling.
- Coincides with sunsetting of number of related class orders, opportunity to review.
Proposals
- Grant legislative relief to allow market makers of certain exchange-traded products
to naked short sell units in exchange traded fund or managed fund making market. - Relief to allow naked short sales of unissued products during a deferred settlement.
- Also for naked short sales connected to IPO sell downs with special purpose vehicle.
- Change relevant time that short positions are calculated, remake sunsetting orders.
- After ASIC aims to consolidate all short selling-related relief into a single instrument.
Effectiveness
- ASIC invites submissions by 20 June, aim for consolidated instrument before 1 October.
