To enhance transparency of the marketplace, the Exchange is seeking feedback from market participants on measures for wider reporting and disclosure of short selling activities.
The measures are:-
(i) Marking of Short Selling Orders, Publication of Short Selling Statistics
The marking of all selling orders for securities, including structured warrants and exchange-traded funds, to indicate short sales by the seller. Such marking is to be done by the broker or the customers at the point of order entry.
SGX is also proposing the publication of the aggregated number of short-selling orders transacted for individual securities on a daily basis. The marking of short-selling orders will facilitate the collation of data on short selling activities in Singapore.
(ii) Reporting Obligations on Substantial Short Positions
In addition, SGX is consulting on a possible requirement for holders of substantial short positions in individual securities to report their positions to the Exchange on a monthly basis. A threshold of one per cent (1%) is proposed as the determinant of a âsubstantial short positionâ.
SGX is also mindful that a statutory framework will be required in order to place legal obligations on customers to declare short selling orders to their brokers, and for holders of substantial short positions to declare their holdings, should the proposed new measures be implemented.