May 2009

Response to IOSCO consultation on short selling:

The Exchange has responded to the consultation by IOSCO which outlines 4 principles for the effective regulation of short selling. The Exchange is supportive of the proposed principles and IOSCO's efforts to develop a more consistent international approach.

In our response we reiterate that we view short selling as a legitimate investment technique and a key component of a well functioning capital market. We recognise however that certain measures may be desirable to minimise any potential negative effects of short selling and support IOSCO's proposed principles, in particular the need for an efficient settlement discipline.  We are also supportive of IOSCO's approach which seeks harmonisation across countries, but leaves sufficient discretion for national regulators to implement measures suited to local market conditions and infrastructure.

Downloads
Response to IOSCO consultation on short selling (file pdf - 1 MB)