Following consultation with industry groups from August 2010, ASIC has clarified in class order CO 10/1037 that short-sellers will no longer be able to net-off long and short positions – where those positions are held in different capacities.
For example, a fund manager who has 4,000 XYZ Ltd shares in its capacity as trustee of fund A and is short 1,000 XYZ Ltd shares in its capacity as trustee of fund B must not net-off these positions held in different capacities and must report to ASIC a short position in XYZ Ltd of 1,000 shares.
ASIC’s clarification of the short position reporting requirement will standardise reporting of short positions and ensure the markets have a more accurate representation of the overall short positions in section 1020B products.
When does this commence?
Class Order 10/1037 is effective 17/01/2011.
For further information:
Read the full ASIC media release here 11-04AD
Read the Class Order here ASIC Class Order [CO 10/1037]
Explanatory Statement to the Class Order Explanatory Statement