On 4 December 2018, RSA FSCA released discussion papers on short sales/LEIs.
- FSCA issued the following two discussions papers for comment by 15 January 2019.
Short Sale Reporting
- In response to the finding in the 2014 IMF Financial Sector Assessment Program that South Africa did not have a reporting framework in place for short sales.
- FSCA publishes a discussion paper that sets out proposals to address shortcoming.
- Includes flagging of short sale orders on an exchange trading system and public disclosure of aggregated short sale transactions across authorized exchange users.
- Two-tier system for the reporting and disclosure of significant short positions held in shares admitted to trading on a regulated market (position reporting).
- This comprises requirement for private disclosure if net short position has reached a specified first trigger threshold, and public disclosure if it reaches higher position.
Legal Entity Identifiers
- The aim of this discussion paper is to promote awareness of the global use of LEI’s and seek feedback from the market on the proposals for the implementation of LEIs.
- Comments are due by 15 January 2019.