A consultation from ASIC (Australian Securities & Investments Commission) is seeking feedback from short sellers on proposals to:
- grant legislative relief from the naked short selling prohibition to market makers of certain exchange-traded products (ETPs);
- grant legislative relief from the naked short selling prohibition in the context of corporate actions and initial public offering (IPO) sell-downs;
- change the relevant time short positions are calculated; and
- remake a number of class orders on short selling which are due to expire (sunset) under the Legislation Act 2003 (Legislation Act).
The regulator proposes to consolidate the relief into a single instrument.