ASIC restrict short selling in ASX - Updated 22 Sep 2008
ASIC restrict short selling in Australia Stock Exchange . The Australian Securities and Investment Commission has made the following decisions to apply from the opening of the market on Monday, 22 September 2008:
1. Naked short selling banned
2. Covered short selling banned (subject to limited authorised market-maker exemption)
3. ASIC will reassess and advise the market in 30 days, whether or not it will at that time, or at a later date, reopen covered short sales for non-financial stocks.
ASX will implement the changes by removing all stocks from the permitted list of naked short sales.
Impact on CommSec customers:
In order to support the new regulations and return confidence to the financial markets, CommSec has made the following changes effective immediately
- Day Short Selling - No new orders will be accepted.
- Term Short Selling – No new orders will be accepted. Clients with open positions can still close out existing positions.
- OTC CFDs - No new “sell to open” orders will be accepted. Clients with open positions can still close out existing positions.
As ASIC and the ASX release more information regarding the changes to Short Selling we will post additional updates on the website to keep CommSec customers informed.
For further information regarding the ASIC guidelines on short selling please refer to the ASIC website (asic.gov.au)