On 14 May, ASIC sought feedback on proposed short selling rule.

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.