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.