Australia's regulator, ASIC, has lifted the limit on the covered short selling of financial stocks which was originally imposed on 21 September 2008 as part of the overall ban on short sales.
In reaching the decision, ASIC noted that the global financial crisis and global recession continues to place pressure on Australia's markets', and that they 'will not hesitate to reimpose the ban immediately ... and without consultation if it considers market conditions warrant such action. ASIC will, in its monitoring of the market along with ASX, pay particular attention to short selling activity by participants (including activity by hedge funds and similar institutions) which could potentially harm Australia's financial system.ASIC also advised that the daily reporting of gross short sales would continue, as would the publication of aggregate short sale statistics the day after trading, until the commencement of the Government's permanant disclosure levels, which have yet to be announced.
