Switzerland is self-regulating its shorting
11 October 2013 Geneva
Image: Shutterstock
The Swiss stock exchange SIX has announced its intention, alongside Scoach Switzerland and Swiss regulator FINMA, to add to regulations concerning short selling.
“In Switzerland, there are no provisions to regulate short selling in terms of laws or stock exchange regulations,” said a release by SIX Swiss Exchange.
In 2008, an announcement was made by the then Swiss Federal Banking Commission (SFBC) and SIX Swiss Exchange imposing certain restrictions on short selling.
But now, according to the regulations of SIX Swiss Exchange and Scoach, short selling will be permitted if the selling party is able to deliver the securities on time.
The exchange specifically mentioned that it is expanding section 9 (Market conduct) of SIX Swiss Exchange's and Scoach Switzerland's rule book, to include information on the powers of the stock exchange to regulate short selling.
Directive 3 (Trading) of SIX Swiss Exchange and Scoach Switzerland will each be supplemented with provisions dealing with this (new section VI: Short selling). These new regulations will enter into force on 11 November 2013, and replace all previous announcements made on this matter.
The new regulations provide the management of the exchanges with the flexibility to react to changing, special market situations if necessary. Following consultation with FINMA, the exchanges may, if required, implement market-based restrictions on short selling at short notice.
Section 9 also contains provisions requiring participants and traders to comply with the market conduct rules and forbidding unfair trading practices.
“As before, these restrictions shall still apply to carrying out short sales,” concluded the release.
“In Switzerland, there are no provisions to regulate short selling in terms of laws or stock exchange regulations,” said a release by SIX Swiss Exchange.
In 2008, an announcement was made by the then Swiss Federal Banking Commission (SFBC) and SIX Swiss Exchange imposing certain restrictions on short selling.
But now, according to the regulations of SIX Swiss Exchange and Scoach, short selling will be permitted if the selling party is able to deliver the securities on time.
The exchange specifically mentioned that it is expanding section 9 (Market conduct) of SIX Swiss Exchange's and Scoach Switzerland's rule book, to include information on the powers of the stock exchange to regulate short selling.
Directive 3 (Trading) of SIX Swiss Exchange and Scoach Switzerland will each be supplemented with provisions dealing with this (new section VI: Short selling). These new regulations will enter into force on 11 November 2013, and replace all previous announcements made on this matter.
The new regulations provide the management of the exchanges with the flexibility to react to changing, special market situations if necessary. Following consultation with FINMA, the exchanges may, if required, implement market-based restrictions on short selling at short notice.
Section 9 also contains provisions requiring participants and traders to comply with the market conduct rules and forbidding unfair trading practices.
“As before, these restrictions shall still apply to carrying out short sales,” concluded the release.
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