General Financial Sector Conduct Authority (FSCA) publishes discussion paper for public comment by 15 January 2019


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.

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