Sc And Bursa Malaysia To Uplift Temporary Suspension Of Regulated Short Selling On 1 January 2021

Publish date: Wed, 16 Dec 2020, 11:35 AM

The Securities Commission Malaysia (SC) and Bursa Malaysia Berhad (Bursa Malaysia) will uplift the temporary suspension of Regulated Short Selling (RSS) and have reviewed other market management measures that were introduced this year following heightened market volatility arising from the broader impact of COVID-19.

This decision was made after careful consideration of current market conditions and the evolving needs of the market.

The suspension of RSS, scheduled to expire on 31 December 2020, will be uplifted on 1 January 2021 to facilitate investors' risk management and revive Securities Borrowing and Lending (SBL) activities, which is an integral capital market function to promote product development and market making activities.

The RSS will be re-introduced with the following enhanced control measures to ensure stability and maintain investor confidence:

  • The daily gross short position limit for Approved Securities[1] will be temporarily reduced from 3% to 2%; and
  • A new cap of 4% on RSS aggregated net short position will be introduced.

Meanwhile, the temporary suspension on Intraday Short Selling (IDSS) and intraday short selling by Proprietary Day Traders (PDT Short Sale) due to expire on 31 December 2020 will be extended to 28 February 2021. Consequential to the extension of PDT Short Sale, temporary waivers in relation to PDT will be extended to 28 February 2021.

The temporary revisions to existing market management measures, namely the dynamic and static price limits as well as the circuit breaker, will be extended to 30 May 2021. These were implemented on 20 July 2020 and are due to expire on 18 January 2021.

In addition, the temporary relief measures and flexibilities relating to margin financing, which are due to expire on 31 December 2020, will be extended to 30 June 2021.

The SC and Bursa Malaysia will continue to closely monitor ongoing domestic and global developments, and take a pro-active approach in implementing appropriate measures that support a fair and orderly market.

SECURITIES COMMISSION MALAYSIA

BURSA MALAYSIA BERHAD


[1] Approved Securities are any of the securities traded on the stock market of the Exchange that are declared by the Exchange as such under Rule 8.22(5).


Discussions
Be the first to like this. Showing 4 of 4 comments

Jack Khan

It is proven rss and idss are tools to earn from retailer. This will make bursa dull just like before covid.

2020-12-17 17:09

Jack Khan

Rss and IDss make the bursa become zero sum game Where only people with access to this rss and idss have advantages to control the market! The result is market stay stagnant after retailer lost all their money.

2020-12-18 06:15

EngineeringProfit

rss and idss should be declared as extreme gambling, haram and nonshariah
compliant (fullstop)

2020-12-18 06:31

bpsiah

Rss and idss is an advantage for the big guys to control the small guys.

2020-12-22 22:20

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