Nigeria's market bans naked shorts for dealing members
09 January 2012 Lagos
Image: Shutterstock
As the Nigerian Stock Exchange (NSE) moves closer to implementing naked short selling, rules are being finalised and dealing members are out, according to local media reports.
According to the NSE’s rule on short selling, made available to Vanguard News, only market makers will be allowed to undertake naked short selling when the practice becomes fully operational in the market.
To guide against irregularities associated with short selling and naked shorting, the NSE declared that a listed security will be sold short at a price below the last sale price and included a rule reminiscent of the RegSHO "locate" rule with reasonable grounds for dealing members.
According to the NSE’s rule on short selling, made available to Vanguard News, only market makers will be allowed to undertake naked short selling when the practice becomes fully operational in the market.
To guide against irregularities associated with short selling and naked shorting, the NSE declared that a listed security will be sold short at a price below the last sale price and included a rule reminiscent of the RegSHO "locate" rule with reasonable grounds for dealing members.
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