Â鶹´«Ã½

Home   News   Features   Interviews   Magazine Archive   Symposium   Industry Awards  
Subscribe
Â鶹´«Ã½
Leading the Way

Global Â鶹´«Ã½ Finance News and Commentary
≔ Menu
Â鶹´«Ã½
Leading the Way

Global Â鶹´«Ã½ Finance News and Commentary
News by section
Subscribe
⨂ Close
  1. Home
  2. Industry news
  3. ASIC standardises reporting of short positions
Industry news

ASIC standardises reporting of short positions


13 January 2011 Sydney
Reporter: Ben Wilkie

Generic business image for news article
Image: Shutterstock
ASIC has issued a class order that will clarify and standardise reporting of short positions in the Australian securities market.

Since 1 June 2010, short-sellers have been required to report to ASIC their short position in a listed security or other listed product. ASIC aggregates this data and publishes to the market the total of the reported short positions in these products.

Since the implementation of short position reporting in June 2010, ASIC has observed different industry practices for calculating and reporting short positions, particularly among fund managers and investment banks.

Following consultation with industry groups from August 2010, ASIC has clarified in class order CO 10/1037 that short-sellers will no longer be able to net-off long and short positions – where those positions are held in different capacities.

For example, a fund manager who has 4,000 XYZ Ltd shares in its capacity as trustee of fund A and is short 1,000 XYZ Ltd shares in its capacity as trustee of fund B must not net-off these positions held in different capacities and must report to ASIC a short position in XYZ Ltd of 1,000 shares.

ASIC’s clarification of the short position reporting requirement will standardise reporting of short positions and ensure the markets have a more accurate representation of the overall short positions in section 1020B products.

The class order will commence on 17 January 2011. In setting this commencement date, ASIC considered submissions from industry groups about the time required to implement any necessary system changes.
← Previous industry article

First securities lending conference of the year
Next industry article →

Elliott joins board at Huntingdon
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Â鶹´«Ã½ Finance Times
Advertisement
Subscribe today
Knowledge base

Explore our extensive directory to find all the essential contacts you need

Visit our directory →

Discover definitions, explanations and related news articles in our glossary

Visit our glossary →