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KUALA LUMPUR: The Malaysian Securities Commission (SC) and Bursa Malaysia Bhd
will raise the temporary suspension of regulated short sales (RSS) of securities after it expires on December 31, but will have improved control measures.
In a joint statement on Wednesday, they said they had reviewed other market management measures introduced this year following increased market volatility stemming from the broader impact of Covid-19.
This decision was made after carefully considering current market conditions and changing market needs.
“The RSS suspension, scheduled to expire on December 31, 2020, will be raised on January 1, 2020 to facilitate investor risk management and revive Securities Lending and Lending (SBL) activities, which is a comprehensive function of the capital market to promote the product. development activities and market creation, ”he said.
They said the improved control measures were aimed at ensuring stability and maintaining investor confidence.
First, the daily gross short position limit for approved securities will be temporarily lowered from 3% to 2%.
Second, a new limit of 4% will be introduced on the aggregate RSS net short position.
Meanwhile, the temporary suspension of intraday short selling (IDSS) and intraday short selling by proprietary intraday traders (PDT short sale) due to expire on December 31 will be extended until February 28.
They said that due to the extension of the PDT short sale, the temporary waivers in relation to PDT will be extended until February 28.
“The temporary reviews of the existing market management measures, that is, the dynamic and static price limits, as well as the circuit breaker, will run until May 30. They were implemented on July 20, 2020 and will expire on January 18 of next year. ” they said.
In addition, the temporary relief measures and the flexibilities related to margin financing, which expire on December 31, will run until June 30 of next year.
SC and Bursa Malaysia will continue to closely monitor ongoing national and global developments, and will take a proactive approach in implementing appropriate measures that support a fair and orderly market.
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