On 25th February 2022, the Securities and Exchange Commission (SEC) announced proposals that would provide greater transparency to investors and regulators by increasing the public availability of short sale related data.
Background Due to increased volatility on the financial markets in 2020 triggered by the COVID-19 pandemic, ESMA decided to temporarily lower the reporting threshold of 0.2 % to 0.1 %, effective from 16 March 2020. The temporarily lowered reporting threshold of 0.1 % was effective until 19 March 2021, after which the reporting threshold was…
Recent disciplinary action by the Securities and Futures Commission (SFC) is a timely reminder to managers of the need to ensure they have in place appropriate systems and procedures to ensure they meet the Hong Kong Short Selling Reporting obligations of the funds that they manage.
This week, on the 1st February 2021, the Statutory Instrument (SI) amending the initial notification threshold under Article 5(2) of the Short Selling Regulation (SSR) entered into force. The SI amends the reporting of net short positions to the Financial Conduct Authority (FCA), in relation to the issued share capital of a company that has…
Yesterday, the Financial Conduct Authority (FCA) fined a Hong Kong hedge fund just over £870,000 for failing to disclosure its net short position in Premier Oil Plc. This is the first time the FCA has taken enforcement action for a breach of the SSR. Asia Research and Capital Management Ltd (ARCM) agreed to resolve the…
With the recent market volatility caused by the COVID-19 pandemic, regulators across the EU and in some jurisdictions further afield have been banning short selling for varying periods. Although there are many who are sceptical of the benefits of short selling bans, several EU states including France, Italy, Spain and Austria had bans in place since March with Italy’s CONSOB opting for a ban until 18th June. Germany, along with Britain which still operates under EU rules, held back in imposing market wide bans.
Following 4 years of consultations and several minor revisions, the Monetary Authority of Singapore (MAS) under the Securities and Futures (Short Selling) Regulations 2018, is finally due to implement rules requiring investors to report their short positions and short sell orders in securities listed on the Singapore Exchange (SGX). The new rules will enter into…