On 4 November 2022, SK FSS proposed rules on registration, short selling disclosures. SK FSS proposed Detailed regulations of the regulations on financial investment business, to ease burden on foreign investment business submitting documents. Revise registration form; update existing form and introduce new form for fulfilling reporting obligation associated with lending transactions when reporting balance…
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Taiwan – FSC Tightens Short Selling Rules
On 30 September 2022, TAI FSC made amendments re daily short selling orders. TAI FSC issued an order stipulating requirements for the sale of borrowed securities. Follows TAI FSC June 2021 adjusted margin purchase/short selling. Rules Combined balance of security borrowing and lending (SBL) short sale volume and margin short sales shall not exceed 25%…
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France – AMF Short Selling Anomalies
On 29 August 2022, FR AMF encouraged firms to report anomalies identified in short selling reports. Follows FR AMF November 2021 issued guidance on EU short selling regulation. Overview The EU Short Selling regulation (VAD) provides for notifications to the regulator and to the market of net short positions accumulated above certain set thresholds. So,…
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U.S. – FINRA Fines for Short Selling Violations
On 18 August 2022, FINRA fined Gar Wood Securities for short selling violations. FINRA accepted AWC from Gar Wood Securities to settle allegations that firm accepted short sale orders without obtaining locates, maintain supervisory system for reporting. Gar Wood violated FINRA Rule 2010 and SEA Reg SHO Rule 203 ((17 CFR 242.203). Violated FINRA Rule…
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Canada – IIROC Short Selling Expectations
On 17 August 2022, C-IIROC issued guidance on short selling and sufficient securities collateral. C-IIROC issued short selling guidance note 22-0130 re participant obligations to settle short sales. Reasonable Expectation Test The notice advises that a member participant must have a reasonable expectation of holding sufficient securities to settle short sales, prior to the order…
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Sweden – FI Fines for Late Short Selling Reporting
On 28 June 2021, SWE FI fined Squarepoint SEK 2mn for late short selling reporting. Squarepoint Ops LLC receives a fee for late short registration in 20 different issuers. Its short net positions in shares in 20 different issuers on 138 occasions reached or fell below relevant thresholds for reporting; for which it must pay…
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