On 12 October 2022, FINRA reported short position reporting, supervisory failures. FINRA issued letter of acceptance, waiver and consent (AWC) with Scotia Capital (USA) Inc. re short position reporting requirements and supervision violations. Alleged Violations Between July 2012 and June 2019, Scotia erroneously included non-reportable short positions reflected in two omnibus accounts in the firm’s…
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Hong Kong – SFC Fined ARCM on Short Selling
On Oct. 12, HK SFC fined ARCM HKD 1.75mn for disclosure breaches. HK SFC reprimanded and fined Asia Research & Capital Management Limited (ARCM). Fined HKD 1.75mn for failures relating to its non-compliance with the EU’s short-selling reporting requirements and for not promptly notify HK SFC of breaches. HK SFC also banned former senior executive…
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Taiwan – FSC Tightens Short Selling Rules
On 11 October 2022, TAI FSC, adjusted the daily intraday securities borrowing and selling orders and margin ratio for securities lending due to political and economic situation. Intraday short selling orders shall not exceed 10% of the daily average transaction volume of the securities in the preceding 30 business days, with certain exceptions. Minimum margin…
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U.S. – SEC Reopens Short Selling Consultation
On 7 October 2022, SEC reopened the public comment period due to a technological error. Reopened until 14 days after publication of reopening release in the federal register. Background: On Feb. 25, SEC proposed to enhance short selling disclosure reporting. Also SEC amends CAT NMS plan for short seilling disclosure report.
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Australia – ASIC Hedge Funds Disclosure
On 6 October 2022, AST ASIC guided on improving disclosure for hedge funds. AST ASIC issued regulatory guide 240 hedge funds: improving disclosure (RG 240) Supersedes prior October 2013 version; also noted related regulation impact statement. Follows AST ASIC February 2022 proposed remaking relief on PDSs, FSGs. Background Corporations act disclosure framework requires the issuer…
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Singapore – MAS Takeover / Merger Code Waiver
On 7 October 2022, SIN MAS issued takeover code waiver for unlisted public companies. SIN MAS Securities industry council issued a practice statement on the application waiver of the Singapore code on takeovers and mergers to unlisted public companies. Overview Code applies to unlisted public companies incorporated in Singapore with more than 50 shareholders and…
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