Australia's share market watchdog has eased its blanket ban on short selling to allow investors trading the difference between share prices on dual-listed stocks to make covered short sales.
The move by the Australian Securities and Investments Commission (ASIC) largely affects funds trading in the dual-listed shares of top miners BHP Billiton Ltd/plc and Rio Tinto Ltd/plc.
Market operator ASX said on Tuesday the regulator would allow investors doing arbitrage trades on dual-listed stocks to use covered short sales on those stocks in Australia.
