PETALING JAYA: The Securities Commission Malaysia (SC) and Bursa Malaysia Bhd will uplift the temporary suspension of regulated short selling (RSS) after careful consideration of current market conditions and the evolving needs of the market.
In a joint statement, the pair said they have also reviewed other market management measures that were introduced this year following heightened market volatility arising from the broader impact of Covid-19.
“The RSS will be re-introduced with the following enhanced control measures to ensure stability and maintain investor confidence, that is, the daily gross short position limit for approved securities 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 Dec 31, 2020 will be extended to Feb 28, 2021.
Consequential to the extension of PDT short sale, temporary waivers in relation to PDT will be extended to Feb 28.
“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 May 30, 2021. These were implemented on July 20, 2020 and are due to expire on Jan 18. 2021.
“In addition, the temporary relief measures and flexibilities relating to margin financing, which are due to expire on Dec 31, 2020, will be extended to June 30, 2021,” it said.
