No more silent big short positions

South Africa has, and continues to trail other countries in its regulation of short sales.

FSCA discussion paper

However, late last year, the Financial Sector Conduct Authority (FSCA) published its discussion paper on the implementation of a short sale reporting and disclosure framework, in order to remedy this regulation shortfall.

Market participants have until 15 February 2019 to respond to the discussion paper with their comments.

The question that remains is whether this proposed reporting mechanism is adequate and suitable for the South African market.

Read the article by Bridget King and James Peart of Cliffe Dekker Hofmeyr here