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SGX proposes short-selling disclosure rules and reporting of short sales volume
Practical Law UK Legal Update 1-503-4626 (Approx. 2 pages)
SGX proposes short-selling disclosure rules and reporting of short sales volume
by Allen & Gledhill LLP
| Published on 01 Oct 2010 • Singapore |
This article is part of the PLC Global Finance September 2010 e-mail update for Singapore.
Speedread
The Singapore Exchange is proposing changes that will require investors who sell securities listed on the SGX to identify their sell orders as either short sell orders or normal sell orders. This article provides a brief overview of the changes.
The Singapore Exchange (the SGX) is proposing changes that will require investors who sell securities listed on the SGX to identify their sell orders as either short sell orders or normal sell orders.
A short sell order will be defined as "any sell order where the seller does not own the security to be sold at the time of placing the order". The sell orders are to be marked by investors. Brokers who are SGX Trading Members will need to put in place the requisite systems and procedures to facilitate the marking of sell orders.
This is a measure taken by the SGX to provide for better market transparency and enhanced accountability. With the data collected, the SGX proposes to publish on trading days short sales statistics for the preceding trading day.
Reference material
The proposed changes were outlined in a consultation paper issued by the SGX on 23 July 2010. Please click here to access the consultation paper from the SGX website.