The Securities Commission (SC) and Bursa Malaysia Bhd have agreed to abolish the temporary bans on intraday short selling (IDSS) and intraday short selling by proprietary day traders (PDT Short Sale), which were set to end on December 31, 2021.
As a result, the PDT interim exemptions associated with the PDT Short Sale will no longer be valid.
The IDSS and PDT Short Sale will restart on January 1, 2022, with additional control mechanisms to maintain stability and orderly trade, according to a joint statement.
“In addition to the current short selling limits, IDSS and PDT Short Sale orders must follow the ‘at-tick rule.'”
“Short selling orders will be executed at the best current asking price or above under the automated application of the ‘at-tick rule,'” it said.
Only stocks listed as approved securities in the Main Market (Day Trading Eligible Securities) and for which the PDT has an agreement to borrow the Day Trading Eligible Securities will be eligible for a PDT Short Sale.
“The Securities Commission and Bursa Malaysia will continue to monitor domestic and global developments influencing the securities market, and will adopt a proactive approach in taking measures to ensure a fair and orderly market,” the statement stated.
