HONG KONG: Changes to Reporting Frequency of Hong Kong Short Selling Position Reporting Pilot

Monday May 28 2012

In a pilot run event changes have been made to the reporting frequency as the second and the last event planned for the pilot run in connection with Hong Kong short selling position.

This is to simulate the scenario when daily reporting is required under Rule 4(3) of the Securities and Futures (Short Position Reporting) Rules (the Rules). When daily reporting is required, pursuant to Rule 4(4) of the Rules, a person who has a reportable short position on each day which the Stock Exchange is open for trading must notify the Securities and Futures Commission of the reportable short position within one business day after the reporting day.

Being one of the two events planned for the Pilot, it aims to provide an opportunity for market participants to test reporting under different simulated scenarios. As described in the Pilot Run Arrangements, the Pilot is optional.

As a general reminder, 8 June 2012 will be the last day of the Pilot. All SPRID assigned during the testing period will be invalidated after the Pilot. The earliest date that you can register to obtain a new SPRID for official reporting is 18 June 2012 when the Rules come into operation and the Short Position Reporting (SPR) Service officially goes live.