HONG KONG: SFC further consults public on Hong Kong short selling position reporting rules

Wednesday October 19 2011

Following a consultation on the Securities and Futures (Hong Kong Short Position Reporting) Rules in May, the Securities and Futures Commission have announced the conclusions and further consultations with the public on the matter.Noting the industry`s feedback about difficulties in reporting short positions on a gross basis, the SFC proposes to revise the rules to require reporting of net Hong Kong short selling positions. The SFC now invites comment on these amendments.

Other than the aforesaid, the SFC will be adopting the rules as proposed in the May consultation. Guidance on reporting will be provided in due course to provide more information on compliance with the new reporting requirement.

Subject to the legislative process, the SFC targets to implement the Hong Kong short selling position reporting requirement by the end of the first quarter of 2012.Interested parties are invited to submit their comments on the further consultation on the rules by 4 November.

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