The Financial Sector Conduct Authority (FSCA) published the following discussion paper for public comment by 15 January 2019:
Discussion paper on the implementation of a Short Sale Reporting and Disclosure Framework
In response to the finding in the 2014 IMF Financial Sector Assessment Programme that South Africa did not have a reporting framework in place for short sales, the FSCA herewith publishes a discussion paper that sets out proposals to address the shortcoming, comprising:
(a) flagging of short sale orders on an exchange trading system and the public disclosure of aggregated short sale transactions across authorised users of the exchange per security (“transaction reporting”);
(b) a two-tier system for the reporting and disclosure of significant short positions held in shares admitted to trading on a regulated market (“position reporting”), comprising of the following:
i. a requirement to report to the regulator (private disclosure) once a net short position has reached a specified first trigger threshold;
ii. if the short position then reaches a second, higher threshold, an obligation on the regulator to make a public disclosure to the market.
Click here for the full discussion paper.
Enquiries: Financial Sector Conduct Authority
Email address: Communications@fsca.co.za
Telephone: 0800 203 722