Investment Funds Update

On December 14, 2016, the Monetary Authority of Singapore (MAS) issued a Consultation Paper on Regulations for Short Selling (Consultation Paper).

The Consultation Paper seeks to introduce requirements to enhance transparency on the level of short selling in securities listed on Singapore’s approved exchanges1. Market participants will be required to specifically mark short sell orders to the relevant exchange2 and report short positions above specific thresholds to MAS. The approved exchanges will publish aggregate information on short sell orders and short positions.

These new requirements form part of the Securities and Futures (Amendment) Bill 2016, and further details are set out in the draft Securities and Futures (Short Selling) Regulations 2017 (Regulations) and the draft Guidelines on the Regulation of Short Selling (Guidelines) attached as Annex B and Annex C of the Consultation Paper, respectively.

This briefing summarizes the proposals relating to these new requirements on short selling.

Key Proposals

A summary of the key proposals in the Consultation Paper is set out below.

Click here to view table. 

Invitation for Comments

Please refer to the Consultation Paper for the complete set of proposals as well as the list of consultation questions, which can be found here. The deadline for comments and feedback to be submitted to the MAS is January 27, 2017.