Malaysia’s intraday short selling ban to lift on 1 Jan
20 December 2021 Malaysia
Image: AdobeStock/rudi1976
Malaysia’s temporary restrictions on intraday short selling will be removed on 1 January.
The market’s securities regulator, Securities Commission Malaysia, and stock exchange, Bursa Malaysia Berhad, say that this temporary suspension, which is due to expire on 31 December 2021, will not be extended.
This will lift current restrictions applied to intraday short selling (IDSS) and intraday short selling by proprietary day traders (PDT Short Sale).
Short selling activities will subsequently be permitted, but with enhanced control measures designed to promote market stability and orderly trading. This will include application of the “at-tick rule”, which dictates that short selling orders will be executed at or above the best current asking price.
PDT Short Selling will only be allowed for securities listed as approved securities on the Bursa Malaysia Berhad Main Market (ie Day Trading Eligible Securities) and where the PDT already has an arrangement in place to borrow these securities. Naked short selling is not permitted.
The temporary ban on short sales was introduced on 24 March 2020 in the face of the COVID-19 pandemic. On 22 February 2021, the Securities Commission Malaysia and the stock exchange took a decision to extend this suspension until 29 August, and this was again subsequently extended until 31 December 2021.
The market’s securities regulator, Securities Commission Malaysia, and stock exchange, Bursa Malaysia Berhad, say that this temporary suspension, which is due to expire on 31 December 2021, will not be extended.
This will lift current restrictions applied to intraday short selling (IDSS) and intraday short selling by proprietary day traders (PDT Short Sale).
Short selling activities will subsequently be permitted, but with enhanced control measures designed to promote market stability and orderly trading. This will include application of the “at-tick rule”, which dictates that short selling orders will be executed at or above the best current asking price.
PDT Short Selling will only be allowed for securities listed as approved securities on the Bursa Malaysia Berhad Main Market (ie Day Trading Eligible Securities) and where the PDT already has an arrangement in place to borrow these securities. Naked short selling is not permitted.
The temporary ban on short sales was introduced on 24 March 2020 in the face of the COVID-19 pandemic. On 22 February 2021, the Securities Commission Malaysia and the stock exchange took a decision to extend this suspension until 29 August, and this was again subsequently extended until 31 December 2021.
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