Naked short selling relief
02 May 2011 Canberra
Image: Shutterstock
The Australian Securities and Investments Commission (ASIC) has made a minor amendment to ASIC Class Order [CO 09/774] Naked short selling relief for market makers ([CO 09/774]), which will allow licensed market makers to short sell securities in the S&P/ASX300 index, in order to hedge risk. Previously, this was only allowed for securities that appeared in the S&P/ASX200 index.
While section 1020B of the Corporations Act 2001 prohibits naked short selling, licensed market makers have been afforded relief to enable them to mitigate the risks involved in their market making activities.
The remaining conditions in [CO 09/774] remain unchanged.
The amended class order commenced on 19 April 2011.
For more information or to download [CO 09/774] and see Regulatory Guide 196 Short selling (RG 196) please visit;
http://www.asic.gov.au/asic/asic.nsf/byHeadline/11-88AD%20ASIC%20amends%20class%20order%20to%20provide%20further%20hedging%20relief%20to%20market%20makers?opendocument#
While section 1020B of the Corporations Act 2001 prohibits naked short selling, licensed market makers have been afforded relief to enable them to mitigate the risks involved in their market making activities.
The remaining conditions in [CO 09/774] remain unchanged.
The amended class order commenced on 19 April 2011.
For more information or to download [CO 09/774] and see Regulatory Guide 196 Short selling (RG 196) please visit;
http://www.asic.gov.au/asic/asic.nsf/byHeadline/11-88AD%20ASIC%20amends%20class%20order%20to%20provide%20further%20hedging%20relief%20to%20market%20makers?opendocument#
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
