Hong Kong – SFC Trade Disclosure FAQs

On 15 June, HK SFC issued FAQs on disclosure of transaction data.

  • Issued consultation conclusions on proposals for regulation of asset management.
  • Point-of-sale transparency and disclosure required for discretionary accounts Nov.
  • Among others, new code requirements govern the disclosure of non-quantifiable
    monetary benefits and independence status, come into effect on August 17 2018.
  • FAQs respond to queries raised by industry regarding the implementation of rule.


  • FAQs address commissions from trailer funds, and independence of intermediary.
  • Expect licensed and registered persons to disclose maximum percentage of trailer
    fees receivable for specific fund as per distribution agreement with product issuer.
  • One objective of disclosure requirement, is to ensure that only truly independent
    intermediaries can represent themselves as independent, allows as one-off basis.

France – AMF MiFID II Guide for IAs

On 13 June, FR AMF issued updated guide for investment advisers.

Updated Guide

  • To support IAs in fulfillment of obligations, AMF updated MiFID 2 guide of October 2017.
  • More than an overview of impact of MIF 2, the guide aims to serve as a tool for IAs.
  • MiFID 2 transposed into French law by a law of 23 June 2016, in force 3 January 2018.
  • For IAs, provisions similar to MiFID transposed by order of 22 June 2017 (no. 1107).
  • Under the French IA (CIF) regime, the relevant provisions have been incorporated
    into the AMF General Regulation, these provisions, came into force on Jun. 8, 2018.
  • French IA system is changing the organization of CIFs, it introduces new concepts.
  • Eg concept of independent investment advice, and introduces new obligations for IAs.


  • The MiFID 2 guide for IAs published by the AMF now contains eight thematic sheets.
  • Seven thematic sheets of first version have been enhanced by the provisions of the
    AMF General Regulation, as well aspractical answers to frequently asked questions.
  • 8th sheet aims to present, in non-exhaustive way, steps of the customer relationship.
  • Sheets include impacts of MiFID 2 on IAs, enhancing IA authorization and monitoring
    procedure, rules of governance of the IA, and the prevention of conflicts of interest.
  • Independent investment advice, governance of financial instruments, strengthening
    customer information, evaluation of suitability of products, and putting into practice

U.S. – NASDAQ Options Position Limits

On 5 June, NASDAQ, PHLX, BX rules on SPY ETF position limits.

  • Pilot program no position limits on SPY securities scheduled to expire Jul. 12, 2018.

New Limits

  • In lieu of extending SPY Pilot Program for another year, proposed position, exercise
    limits of 1,800,000 contracts, options on SPY, becoming operative on 12 July 2018.
  • Permanent position and exercise limits established, no need to report on pilot now.


  • Pending SEC filing, plan to be effective 30 days from filing, no other major change.

Saudi Arabia – CMA on Foreign Investment

On 4 June, SA CMA adopted FAQ on investment by foreign firms.

  • Rules on investment of qualified foreign financial institution in listed securities.
  • Document aims to answer questions, which may be raised by foreign investors,
    licensed persons and interested parties, regarding rules governing investments.

Germany – BaFin Holding Notification Form

On 1 June, BaFin issued form for notification of holding acquisition.

  • German Banking Act (KWG) section 2c(1) requires BaFin, Bundesbank be notified
    of acquisition of significant/qualified interest in a securities trading company/bank.
  • Information should be provided, in accordance with MiFID II delegated regulation.
  • Voluntary form to assist with providing relevant information are on BaFin website.

U.S. – MIAX SPY Position Limit Increase

On 31 May, MIAX replaced SPY pilot program with position limits.

  • Amended Rule 307/309, Interpretations, Policies .01 to allow SPY Pilot Program
    terminate, establish position, exercise limits of 1,800,000 contracts on SPY options.
  • Operative on 12 July 2018, so no lapse in time between pilot termination, new limits.

Singapore – MAS Short Selling Transparency

On 28 May 2018, MAS issued rules on short selling securities in Singapore.

  • MAS rules improving the transparency on the short selling activities in Singapore.
  • Follows, MAS January 2013 issued Singapore short selling disclosure rules.

Reporting of Short Sells

  • From 1 October 2018, investors report short positions, short sell orders in securities.
  • Improves transparency, enables investors to make informed decisions for trading.
  • Under new rules, investors with short position above specific threshold to report
    the positions to MAS through new online Short Position Reporting System (SPRS).

MAS Dissemination

  • MAS to publish weekly aggregated short positions of each security on Wednesday.
  • Market participants can access SPRS before the mandatory reporting commences.
  • Securities brokers and banks to flag all investor short sell orders to the exchange.
  • Keep arrangement, for investors to inform brokers when submit short sell orders.
  • SGX to consolidate short sell orders of each security and publish information daily.
  • Rules effected through the Securities and Futures (Short Selling) Regulations 2018.

Further Information

E.U. – ESMA Short Sale Regulation FAQ

On 28 May 2018, ESMA further updated FAQs on the Short Selling Regulation (SSR).

  • Amended FAQ 10.13 to further specify requirements on easy to borrow/purchase list.
  • Listed conditions to meet requirement to have a locate arrangement, per A. 12(1)(c).
  • No longer allows referring to “easy-to-borrow or purchase” list as locate arrangement.
  • Easy-to-borrow or purchase list considered “easy to borrow or purchase confirmation”
  • only where it includes assessment of maximum shares affected by possible short sale;
  • Market conditions at time of providing list, including liquidity of the shares concerned.
  • Assessment has to be reviewed for quantity, and any change in the market conditions.

Australia – ASIC Short Selling Relaxation

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


  • 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.


  • ASIC invites submissions by 20 June, aim for consolidated instrument before 1 October.

France – AMF MiFID II Asset Management

On 9 May, AMF updated rules regarding transposition of MiFID II.

  • AMF updating rules (instructions, positions and recommendations) to reflect impact
    of transposition of MiFID II, and introduce new regime for asset management firms.
  • Separation of regime of portfolio management firms, from that of investment firms.
  • Portfolio firms cannot just provide the portfolio management service for third party.
  • Must be in addition to its UCITS or AIF management activity, subject to conditions.

Updated Documents

  • AMF updated four documents to reflect this change, DOC-2008-03, on accreditation
    procedure for portfolio management firms, disclosure duties, passport.
  • DOC-2016-01 on procedure for the approval of UCITS depository investment firms,
    the procedures for examining the specifications of other UCITS and AIF depositories.
  • DOC-2009-24 on shareholding change in portfolio management firms, DOC-2017-10
    on prudential valuation of acquisitions, increases in qualifying holdings.


  • Changes from MiFID rules for funds are applicable from 9 May 2018.