The Australian Securities and Investments Commission (ASIC) has clarified and standardised the regulatory framework around short selling.
The clarified position follows an industry consultation process begun in August last year and will mean that short sellers will no longer be able to net-off long and short positions where those positions are held in difference capacities.
The regulator explained the change by saying a fund manager who had 4,000 shares in a particular company in one fund and was short 1,000 shares in the same company with respect to another fund could not net-off those positions and must, therefore, report to ASIC the short position of 1,000 shares.
ASIC said the clarified arrangements would standardise the reporting of all short positions and ensure markets had a more accurate representation of overall short positions.
It said the new arrangements would start from next Monday.
