MAS & SGX: Current rules for short-selling activities are already transparent

WE refer to Tan Song Huat's letter calling for short-sell trades of any size on SGX to be published within 24 hours. ("Shorting on the SGX: Have full transparency on such trades, big or small", BT, April 3, 2020).

We would like to clarify that SGX and MAS already publish information on short-sell trades and outstanding short positions respectively. MAS and SGX rules require all persons making short-sell orders to identify the order as such. The requirement applies regardless of order size and there is no exemption for small orders. SGX publishes data on all submitted and matched short-sell orders (that is, short-sell trades) on its website (www.sgx.com/research-education/securities) by the next working day.

The "Percentage Threshold Exemption" that Mr Tan mentioned refers to an additional reporting requirement that is on top of the short-sell order reporting described above. Persons whose aggregate short positions in a counter exceed either 0.2 per cent of total issued shares or S$2 million in aggregate value are required to report these outstanding positions on a weekly basis. This includes all short positions held through nominee accounts.