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New Short Selling Rules Start Today
If you perform any online sell share transactions on the SGX today, you will notice that there is a new column where you will need to indicate whether it is a short sale.
A short sale means a sell trade that you either do not yet own the shares at the point of selling (naked short) or you had borrowed shares to sell.
Based on the consolidated figures, SGX will report the volume of short-selling activity for each company daily.
While the move improves transparency, the reported figures can be misleading as it does not tell us the volume of outstanding shorts, which is a far better indicator to help us determine the level of shorting activity in any company.
New short-sale reporting rules kick in today (Business Times)