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Short Sell Marking

1. They didn't specifically say what triggered them to implement this, but my guess is the Olam/Muddy Water case. Now we know the volume, if there are irregularities (big volume short sell), then   we can be forewarned. We would have noticed the big short sell volume on Olam if we had this report last year, and SGX might have been done before that (e.g. by  inquiring  into who shorted that big volume).

I quote this from SGX's website:

" Information on short selling activities is  relevant to the trading decisions of market participants. For example, information that those securities are under sustained heavy short selling may indicate strong negative price pressure on those securities.

As such, disclosure of short selling activities in Singapore is a step towards  enhancing the information available for traders and investors to make informed trading decisions.

Information on short sale transactions also helps to  deter market abuse  by alerting authorities to activities that may potentially disrupt the orderly functioning of markets, and aids in investigation and enforcement.

Market participants should exercise care when interpreting information on short selling. For instance, information on short sale volume may not reflect the outstanding short position in those securities. Volume of short sales may include trades which have since been squared off by offsetting buy trades.  "

  2. Intepretation is of value, like the one in point 1. Anyway, this report is nothing new in the industry. US has it for long time, http://www.sec.gov/answers/shortsalevolume.htm SGX is kinda lagging behind.

3. Exemptions are given to market makers as they may have activities like managing liquidity, derivatives, and hedging. Regulators are not so keen about these " regular" activities these banks/fund managers do, but by speculators who will bring sudden instability to the market. Anyway, more details on the rules http://rulebook.sgx.com/net_file_store/new_rulebooks/s/g/SGX-ST_Mar_11_2013.pdf

SGX may have more answers to the questions you still have:  http://www.sgx.com/wps/portal/sgxweb/home/faqs#Marking_of_SellOrders

 

Can someone let us know how and why the short sell marking regulation came into being ?

what's the purpose of short sell marking if interpretation is of  no value ?

and only market makers are exempt.  How would short sell marking help market makers ?

thanks very much.

 

Market participants should exercise care when interpreting information on short selling. For instance, information on short sale volume/value may not reflect the outstanding short position in those securities. Volume/value of short sales may include trades which have since been squared off by offsetting buy trades.

 

Hence, SGX won't be able to healthy growth in the long run. Always up and down cyclically as notice from its composite index or STI!

 

As long as share borrowing scheme is on the process, manipulation by market player is hard to control and regulate. It is an unfair trading market mechanism in SGX I suppose!

angmohlin      ( Date: 12-Mar-2013 18:22) Posted: Hi all, by when the short seller must buy  back. Or what SGX going to do on those short sellers. Please enlighten. Thanks.

 

Here's the link to the Short Sell Reports:

  http://www.sgx.com/wps/portal/sgxweb/home/marketinfo/marking_of_sell_orders/!ut/p/c5/04_SB8K8xLLM9MSSzPy8xBz9CP0os3gjR0cTDwNnA0t_E3NLA0_zQF9PT0NzA09fY6B8JLJ8KEg41CnQxCks1NDb04yAbj-P_NxU_YLciHIAu1pLpQ!!/dl3/d3/L2dBISEvZ0FBIS9nQSEh/

 

Short Sell Executed on March 12, 2013

http://www.sgx.com/wps/wcm/connect/724baa804edca0aea52ca7140e877772/DailyShortSell20130312.txt?MOD=AJPERES& CACHEID=724baa804edca0aea52ca7140e877772

 

 

 

All these are intraday short sellers I believe. They buy back on the same day. Those on cfd nobody knows how many of them shorts sell a stock since they are not mandated to mark short selling interests to SGX.

angmohlin      ( Date: 12-Mar-2013 18:22) Posted: Hi all, by when the short seller must buy  back. Or what SGX going to do on those short sellers. Please enlighten. Thanks.

 

Hi all, by when the short seller must buy  back. Or what SGX going to do on those short sellers. Please enlighten. Thanks. 

 

not at all jonathant, and I 've a same view with you :D

jonathant      ( Date: 12-Mar-2013 09:02) Posted: thanks gufeng88 for replying...now we'll be able to  know which counter are short sellers' favourite.  It's a reference point to know each counter better, and to make decision whether to avoid or to participate.

 

SGX good market execution mechanism's regulation enforcement. It is more ethical, transparent informative and fair for buy, hold and sell market players' trading/executing mechanism. I raise my thumb up!

 

It really makes little difference, since buyers can easily send all the shorts scrambling with the tails curled down...

jonathant      ( Date: 12-Mar-2013 09:02) Posted: thanks gufeng88 for replying...now we'll be able to  know which counter are short sellers' favourite.  It's a reference point to know each counter better, and to make decision whether to avoid or to participate.

 

thanks gufeng88 for replying...now we'll be able to  know which counter are short sellers' favourite.  It's a reference point to know each counter better, and to make decision whether to avoid or to participate.

 

not at all! :)

commando      ( Date: 12-Mar-2013 00:13) Posted: Tks!!!

 

Tks!!!

 

short selling report 11 Mar 2013

 

http://www.sgx.com/wps/wcm/connect/c5d13f804ed98ee6a102a7140e877772/DailyShortSell20130311.txt?MOD=AJPERES& CACHEID=c5d13f804ed98ee6a102a7140e877772

 

 

Hi, how u get the details??? Tks

 

11-Mar-2013 is the first day of Short Sell Marking. Let's look at how many short sell orders of selected stock.

 

	Date	Short Sell	Total	Short Sell	Total Trade	ShortSell	Price	Price	Price	Price
Stock		Volume	Volume	Value SGD	Value SGD	%	Change	Previous	Open	Close	High	Low
Genting SP	11-Mar-13	2,187,000	21,517,000	3,357,150	33,021,550	10.2	0.0	1.53	1.53	1.53	1.545	1.52
Wilmar	11-Mar-13	4,611,000	24,667,000	15,414,050	82,571,800	18.7	-3.8	3.43	3.4	3.3	3.4	3.3
GoldenAgr	11-Mar-13	46,999,000	97,582,000	28,649,910	59,500,220	48.2	0.0	0.605	0.61	0.605	0.615	0.605
AusGroup	11-Mar-13	1,182,000	7,395,000	597,320	3,729,115	16.0	-3.9	0.515	0.515	0.495	0.515	0.49