Australia – ASIC Short Selling Relaxation Extended

Australia – ASIC Short Selling Relaxation Extended

On 6 December 2022, AST GVT registered ASIC Corporations (Short selling) Amendment Instrument 2022/968, to amend 2018/745 detailed above, as from 7 December 2022.

  • Extends hedging relief to permit naked short selling by a market maker of an interest in specified ETFs (approved ETFs) for the purpose of hedging risks arising from market making activities in a ETO whose underlying interest is in respect of approved ETFs.
  • Extends deferred settlement relief to permit deferred settlement trading under or in connection with a public offer where there is a commitment to pay application monies.
  • Or where there is an entitlement to be transferred securities under/in connection with a corporate action e.g. a compromise or arrangement under Corporations Act Part 5.1.
  • Also makes minor, technical and administrative updates to 2018/745.