Malaysia Extends Restrictions on Intraday Short Selling

The six-month extension will enable Bursa Malaysia to enhance its control measures for intraday short selling activities in order to promote market stability.

Malaysia’s SC (Securities Commission) and Bursa Malaysia have announced an extension of the temporary suspension on Intraday Short Selling (IDSS) and intraday short selling by Proprietary Day Traders (PDT Short Sale) to 29 August 2021.

Short-selling restrictions were introduced in March 2020, as part of efforts to mitigate potential risks arising from heightened volatility and global uncertainties.

The temporary suspension of Regulated Short Selling (RSS) was allowed to expire on 31 December 2020, and RSS was re-introduced on 1 January 2021 with enhanced control measures to ensure stability and maintain investor confidence.

The temporary suspension of IDSS and PDT Short Sale was allowed to remain in place and is due to expire on 28 February 2021. This will be extended six months to 29 August 2021.

“The additional six-month suspension of IDSS and PDT Short Sale, which are used mainly as a day trading strategy, will enable Bursa Malaysia to enhance the control measures for intraday short selling activities in order to promote market stability and strengthen the integrity of the capital market,” the SC and Bursa said in a statement.

The SC and Bursa Malaysia will continue to monitor developments affecting the securities market and evaluate the adequacy of existing measures to support a fair and orderly market as well as mitigate potential risks, the statement said.

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