Singapore to tighten short selling rules
16 December 2016 Singapore
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The Monetary Authority of Singapore (MAS) as proposed a series short selling reforms to enhance market transparency.
As part of the Securities and Futures (Amendment) Bill 2016, market participants will be required to specifically mark short sell orders to the relevant exchange and report short positions above specified thresholds to MAS.
The proposed regulation states that new short position threshold in respect of any specified capital markets product is the lower of 0.05 percent of the outstanding shares in the relevant class of shares of the corporation in respect of the specified capital markets products.
Additionally, $1 million in aggregate value of the outstanding shares in the relevant class of shares of the corporation in respect of the specified capital markets products.
Exchanges will be held to account on the new rules with the threat of a fine of up to $25,000, and in the case of a continuing offence, to a further fine of up to $2,500 for every day the offence continues after conviction.
MAS has opened the consultation period until 27 January.
As part of the Securities and Futures (Amendment) Bill 2016, market participants will be required to specifically mark short sell orders to the relevant exchange and report short positions above specified thresholds to MAS.
The proposed regulation states that new short position threshold in respect of any specified capital markets product is the lower of 0.05 percent of the outstanding shares in the relevant class of shares of the corporation in respect of the specified capital markets products.
Additionally, $1 million in aggregate value of the outstanding shares in the relevant class of shares of the corporation in respect of the specified capital markets products.
Exchanges will be held to account on the new rules with the threat of a fine of up to $25,000, and in the case of a continuing offence, to a further fine of up to $2,500 for every day the offence continues after conviction.
MAS has opened the consultation period until 27 January.
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