On 22 January 2024, UK BoE issued minutes of November 2023 Securities lending committee meeting. UK FCA updated that UK Treasury had published a draft Statutory Instrument for the new UK short selling regime, and had asked for technical comments from the market. UK Treasury had announced plans to publish the final Statutory Instrument in…
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China – CSRC Tries to Talk Hedge Funds Down from Short Selling
On 24 January 2024, Reuters reported that China's securities regulator the China Securities Regulatory Commission has asked several hedge funds to restrict short selling of stock index futures. Request by CSRC is part of its wider plans to stabilize the country's declining stock markets China's blue-chip CSI300 Index fell to near five-year lows this week…
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E.U. – ESMA Issues Paper on Short Selling Ban Impact
On 11 January 2024, ESMA issued paper on 2020 short selling ban impact. ESMA issued working paper on market impacts of the 2020 short selling bans. Follows, ESMA, March 2022, market impact analysis on short selling bans. Follows, ESMA, April 2022 issued final report on short selling review. Overview At height of the COVID-19 related…
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S Korea – FSS Responds to Bloomberg Short Selling Article
On 16 January 2024, the FSS issued a response to Bloomberg’s Article on Illegal Short Sales in South Korea (Jan 15, 2024). Bloomberg argued in its article that illegal short selling is not rampant in South Korea as the total illegal short selling by the recently detected four global investment banks is equivalent to 0.001%…
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S Korea – FSS Uncover Illegal Short Selling
On 14 January 2024, SK FSS said that it has identified violations against short selling regulations by two global IBs during investigations on top 10 global IBs, found to have submitted non-leveraged short selling orders worth KRW 54bn for total of five stocks. SK FSS will promptly initiate the procedure for disciplinary actions against the…
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Canada – CIRO Proposed Amendments to Short Selling Framework
On 11 January 204, the Canadian Investment Regulatory Organization (CIRO) issued a proposal to support and clarify the short selling framework under UMIR by: adding a new positive requirement in UMIR 3.3 to have prior to order entry, a reasonable expectation to settle on settlement date any order that upon execution would be short selling…
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