Published On: Tue, Jul 29th, 2014

ASIC Repealed Real Time Short Sale Tagging Rule

Greg Medcraft ASIC chairman -

Greg Medcraft ASIC chairman –

ASIC has repealed the short sale tagging obligation in Part 5.12 of the ASIC Market Integrity Rules (ASX Market) 2010 (ASX), ASIC Market Integrity Rules (Chi-X Australia Market) Amendment 2011 (Chi-X) and ASIC Market Integrity Rules (APX Market) 2013.

Consequently, Part 5.12 did not commence on Monday 28th July and market participants are not required to comply with the short sale tagging obligation.

The regulatory landscape has changed markedly since this rule was introduced in 2012. ASIC’s FAST programme has resulted in much more sophisticated surveillance capabilities. The commencement, on 28 July 2014, of Chapter 5A of the ASIC Market Integrity Rules (Competition in Exchange Markets) 2011 which requires market participants to provide regulatory data (including the origin of an order or transaction) is also a significant development. As a result of these changes, the additional data provided by short sale tagging is less significant to ASIC and ASIC has considered very carefully the feedback from participants about the complexities of tagging short sales.

Market participants will still be required to provide end of day reporting to a market operator to ensure they comply with the short sale transaction reporting requirements under the Corporations Act and Corporations Regulations without any changes to existing market practice see ASIC Regulatory Guide 196 Short selling.

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