Malaysia extends intraday short selling ban to end-2021

The Securities Commission Malaysia (SC) and Bursa Malaysia Berhad (Bursa Malaysia) announced a further extension of the temporary suspension on Intraday Short Selling (IDSS) and intraday short selling by Proprietary Day Traders (PDT Short Sale) to 31 December 2021. Temporary waivers related to proprietary day trading will also be extended to 31 December 2021.

The decision to extend the suspension was made after careful consideration of the various initiatives currently undertaken to strengthen the control measures for intraday short selling activities in order to promote market stability and strengthen the integrity of the capital market.

These involve the ongoing enhancements to Bursa Malaysia’s trading system to improve overall capacity and robustness of the Bursa Trade Securities 2 (BTS2) system, including the automated application of the “at-tick rule”. Under this rule, IDSS and PDT Short Sale orders shall be at the prevailing best selling price or higher. The SC and Bursa Malaysia will continue to monitor developments affecting the capital market and take the necessary measures, to ensure a fair and orderly market as well as mitigate potential risks.

The temporary suspension of IDSS and PDT Short Sale was introduced on 24 March 2020 to mitigate potential risks arising from heightened volatility and global uncertainties as a result of the COVID-19 pandemic. It was extended on 22 February 2021 and is due to expire on 29 August 2021.


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