In accordance with ASIC’s recently announced plan to lift the ban on covered short selling of non-financial stocks, IRESS has implemented software changes to accommodate the new short selling disclosure requirements.
Lifting the ban on covered short selling introduces new rules for the disclosure and reporting of covered short sales. This change is likely to take effect from 19 November 2008. Details of the requirements for short selling can be found on the ASIC website.
To support the new short selling disclosure requirements, IRESS has modified its IRESS Order System (IOS) product suite. These modifications are available to institutional IOS traders, and will be available to retail IOS traders in the coming weeks.
To allow time for clients to upgrade their IOS, IRESS has negotiated with ASIC to permit institutional brokers/clients to omit specific indication of a long sale. This applies until 1 February 2009. IRESS encourages Institutional clients to begin the process of upgrading their software.
IRESS has also prepared a document explaining how to flag an order as a short sell or exempt short sell, in accordance with the new rules using existing versions of the IOS software.
Retail brokers are encouraged to contact ASIC to ascertain if the newly introduced short selling disclosure requirements apply to their short selling practices.
For further information, please contact:
Kirsty Gross
General Manager - Product, Sales and Marketing
02 8273 7000
Sean Doheny
National Product Manager
03 9018 5800