AUSTRALIA: ASIC amends Australia definition of short position

Thursday June 24 2010

Published with immediate effect, the Australian Securities and Investments Commission`s Class Order 10/464 amends the Australia definition of a short position in Class Order 10/29, regulation 7.9.99. A short position is defined in the Companies Regulations as a position in relation to a section 1020B product in a listed entity where the quantity of the product which a person has is less than the quantity of the product which the person has an obligation to deliver. This definition is now modified to include situations where the person holds the product on behalf of another person except where that person has the sole discretion to decide whether the product will be sold, and situations where another person is holding the product on the person`s behalf where the person has the sole discretion to decide whether the product will be sold. In addition, the definition amends the definition of the product which the person has the obligation to deliver, to include the product which the person has a contingent or non-contingent obligation to vest title in a lender under a securities lending agreement.

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