SC, Bursa extend short selling suspension to June 30

PETALING JAYA: The Securities Commission Malaysia (SC) and Bursa Malaysia have extended the temporary suspension of short-selling to June 30, 2020.

“The extension of the temporary suspension will ensure that market management measures are still in place, to manage risks within the prevailing uncertain and challenging environment amid Covid-19 pandemic, as well as to mitigate any excessive speculative activities in the marketplace,” according to a joint statement by the two regulators.

Initially, the temporary suspension which started on March 24, was targeted to end on April 30, 2020.

SC and Bursa reiterated that it was introduced as a part of a slew of proactive measures to mitigate potential risks arising from heightened volatility and global uncertainties as a result of the Covid-19 pandemic.

They highlighted that the suspension involved intraday short selling (IDSS) and regulated short selling (RSS), as well as intraday short selling by proprietary day traders.

However, the suspension does not apply to permitted short selling (PSS).

They also reminded investors that the temporary suspension of short selling remains a short-term measure to provide stability and confidence in the Malaysian capital market.

Both the SC and Bursa Malaysia will continue to monitor developments affecting the securities market and evaluate the adequacy of existing measures to support an orderly market and to mitigate potential risks.

source https://www.thesundaily.my/business/sc-bursa-extend-short-selling-suspension-to-june-30-MA2345196