ASIC lifts ban on covered short selling of financial securities

ASIC has lifted the ban on covered short selling of financial securities (as defined in AD08-65 ASIC lifts ban on covered short selling for non-financial securities) from 10am on 25 May 2009.

ASIC lifted the ban on covered short selling of non-financial securities on 19 November 2008 .

ASIC says it will not hesitate to reimpose the ban immediately (using its enhanced and clarified powers under the Corporations (Amendment) Short Selling Act 2008) and without consultation if it considers market conditions warrant such action.

The daily reporting by market participants to ASX of gross short sales will continue as will the publication to the market of aggregate short sales the day after trading.This disclosure regime will operate until the commencement of the Government's permanent disclosure measures.