Eurekahedge - Other Products and Services
Fund Of Private Equity Fund Database Free Trial

Hedge Fund News

EH Report

Manager Interviews

‘Mizuho-Eurekahedge Index’ goes live

Asian Hedge Fund Awards

Industry Events Calendar

Fund Launches and Closures


Eurekahedge Hedge Fund Indices

Hedge Fund Monthly


ASIC Lifts Ban on Covered Short-selling for Non-financial Securities

Australian Securities & Investments Commission


ASIC said it would lift the current ban on short-selling of non-financial securities from opening of trading on 19 November 2008 but would continue the ban on covered short sales in financial securities.

ASIC put a 30-day ban on covered short-selling of securities on 21 September and extended this ban on 21 October as market conditions remained difficult.

The ban on short-selling of financial securities will remain in place until at least 27 January next year, consistent with many other jurisdictions, while ASX will maintain the ban on naked short-selling indefinitely. ASIC confirmed that financial securities would be those comprising the S&P/ASX 200 Financials (including property funds) plus five other APRA regulated businesses.

Key Details

ASIC announces the following effective from Wednesday 19 November:

  1. Covered short sales of non-financial securities will be permitted;

  2. The ban on covered short-selling of financial securities will continue until 27 January 2009. Financial securities are those comprising the S&P/ASX 200 Financials and five additional securities (being those with APRA regulated businesses).

  3. Existing exemptions for covered short-selling, for example those relating to hedging and arbitrage transactions, will continue in relation to financials; and

  4. The facilitation of the sale of securities being recalled from a stock-lending program (whether or not they are financials) will also continue.

Reporting and Disclosure

A key aspect of the disclosure and reporting framework for short sales is the requirement for a broker to ask a client whether a sale is a long sale or short sale. Clients are obliged to inform their broker if a sale is a short sale. On Wednesday 12 November, ASIC provided further information1 to assist brokers and their clients to meet disclosure requirements that will apply from 19 November 2008.

The following measures have been agreed with ASX:

  1. Trading participants will report to ASX each day all short sales including exempt covered short sales in financial securities. This will be a daily report to be submitted by 9.00am of short sales executed up to 7.00pm the previous trading day

  2. ASX trading participants should advise ASX that they have advised their clients to disclose short sales at the time the sale is requested and will take reasonable steps to reinforce this obligation.

The reporting to ASX will be coupled with reporting to the market as follows:

  1. ASX will report short sales to the market after 9.00am the next trading day. The report will show, by security, the total volume of short sales executed on the previous trading day; and

  2. The daily report will include exempt covered short sales in financial securities.

For information, the following are the five additional securities (being those with APRA regulated businesses):

Entity Name


Wesfarmers Limited

008 984 049

The Rock Building Society Limited

067 765 717

Wide Bay Australia Ltd

087 652 060

Futuris Corporation Limited

004 336 636

Calliden Group Limited

061 215 601

This press release first appeared in on 13 November 2008.

© Australian Securities & Investments Commission. Reproduced with permission.



If you have any comments about or contributions to make to this newsletter, please email


Industry News
  The Eurekahedge Report - October 2014  
  Asset Flows Update for the Month of September 2014  
  Hedge Fund Performance Commentary for the Month of September 2014  
  2014 Key Trends in North American Hedge Funds  
  2014 Overview: Key Trends in Funds of Hedge Funds  
  The Billion Dollar Interview with Constellation Asset Management  
  CSRC New Regulations on Private Investment Funds  
  It's All There: Post-AIFMD Fundraising Options in Germany  
  Singapore: Opportunities for Islamic Finance  
  The New Deal: Hedge Fund Management Fees Are Subject to Social Security Taxes  
Eurekahedge Hedge Fund Manager Travel Plans

Copyright © 2014 Eurekahedge Pte Ltd.
Use of this site is subject to our terms and conditions of use.