Politics & Regulation

Hong Kong regulator softens proposed rule on reporting of short positions

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Hong Kong’s new reporting regime on short positions will take effect on June 18, 2012 this year prompting the securities regulator to urge market participants to start preparing themselves on the new reporting requirements.

The good news is that the Hong Kong Securities and Futures Commission will now only require short positions to be reported on a net basis instead of on a gross basis as earlier proposed. While Hong Kong’s legislative body still needs to deliberate on the new reporting regime, the rules are expected to become effective in June barring any legislative hitch.

Ashley Alder, the SFC