• BHR EXC announced the launch of Technical (uncovered) short-selling guidelines.
• Aim to increase liquidity levels, diversify investment and hedging instruments in order to attract new investors, the new guidelines have been approved by BHR CB.

Overview

• The guidelines supplement the existing BHR EXC Market Rules and are designed to regulate technical (uncovered) short selling, where seller does not possess the eligible securities at time of the sale or has not arranged for their borrowing before sale made.
• But commits to settle within the applicable settlement period T+2, under guidelines such short selling is only permitted to authorized brokers and qualified investors.
• Framework includes a number of measures to regulate the short-selling service, including trade suspensions for minimum of 5% drop in reference price of given stock.
• Or if the short-sold securities reach 10% of the total capital issued, BHR EXC has also implemented a clear framework under which trades should take place.
• Eligible members must be authorized by BHR EXC to conduct technical (uncovered) short selling, which is applicable to eligible securities as approved by BHR EXC.