23 Sep 2008 - ASIC clarifies short selling ban & exemptions

ASIC has released a statement to clarify uncertainty around the short-selling ban. This statement addresses the disclosure requirements and exemptions to the ban including the use of short selling to hedge derivative positions.

In summary, exemptions to the short-selling ban include:

• Hedging for existing positions pre-22 September 2008
  
• Dual listed entities
  
• Exercise of exchange traded options
  
• Index arbitrage transactions
  
• Certain covered short sales by Market Makers
  
• Hedging corporate underwriting risk