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

0
942

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