The Australian Securities and Investments Commission (ASIC) is consulting on various proposals relating to both naked and covered short selling. Specifically, the ASIC seeks feedback on its proposals to:

• grant legislative relief to allow market makers of certain exchange-traded products to naked short sell units in an exchange traded fund or a managed fund in the course of making a market in those products;
• grant legislative relief, in the context of corporate actions, to allow naked short sales of unissued products during a deferred settlement trading period;
• grant legislative relief to allow naked short sales in connection with initial public offering (IPO) selldowns made through a special purpose vehicle;
• change the relevant time that short positions are calculated; and
• remake a number of short selling class orders that are due to ‘sunset’.

Following consultation, ASIC aims to consolidate all short selling-related relief into a single instrument to be issued before 1 October 2018. The deadline for comments is 20 June 2018.

If members have any questions or comments, or would like to contribute to an AIMA response, please contact Adam Jacobs-Dean, Oliver Robinson or Adele Rentsch.