Home News Australia – ASIC Relief and Guidance on Short Selling
On 8 October 2018,
ASIC issued legislation on relief, updated guidance on short selling. ASIC corporations (short selling) instrument 2018/745 provides legislative relief for ETF market makers to make naked short sales in ETFs and facilitate market making.
To rely on the relief, ETF market makers are required to meet additional conditions.
Also provides deferred settlement trading, but with potential changes arising from CHESS consultation, this part of relief will ceases end Sep, 30, 2021.
Also permits naked short selling in context of IPO sell downs where special purpose company/saleco offers shares to IPO investors before its unconditional right to them.
Firms able to nominate global end calendar time for calculating their short positions.
ASIC corporations (short selling) instrument 2018/745 commenced on Sep. 28 2018.
Existing ASIC guidance on short selling updated to reflect the legislative instrument.
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