Monday 7 December 2009

SGX makes it compulsory for brokers to mark short-sell orders

In a bid to increase market transparency, the Singapore Exchange (SGX) has said that it is making it compulsory for brokers to mark all short-sell orders.

1 comment:

Guanyu said...

SGX makes it compulsory for brokers to mark short-sell orders

In a bid to increase market transparency, the Singapore Exchange (SGX) has said that it is making it compulsory for brokers to mark all short-sell orders.

A short-sell order is defined as any sell order where the seller does not own the quantity of shares sold at the time of placing the order.

SGX said it will institute this policy of marking short-sell orders in the first half of 2010 in consultation with the Monetary Authority of Singapore (MAS).

In addition, statistics of aggregate short-selling activity for each individual security will be published daily.

The measure follows a November 2008 public consultation paper issued by SGX on efforts to enhance the transparency of short-selling activities.

The feedback received showed that most respondents supported the proposed marking of short-sell orders and the publication of short-selling data.

MAS and SGX will institute the necessary legislative and regulatory framework to effect the measure and details will be made available in due course.

SGX said the enhanced transparency may potentially provide additional input for market participants in making their investment decisions, and could also help deter manipulative conduct. - CNA/ms