SC, Bursa suspend short-selling amid heightened votality

The Securities Commission Malaysia (SC) and Bursa Malaysia Bhd are suspending short-selling temporarily until April 30, 2020, as part of the regulators’ proactive measures to mitigate potential risks arising from heightened volatility and global uncertainties.

It involves intraday short-selling (IDSS) and restricted short-selling (RSS), as well as intraday short-selling by proprietary day traders. The suspension does not, however, apply to permitted short-selling (PSS).

The SC and Bursa Malaysia are closely monitoring ongoing developments at both the global and domestic fronts.

“We continue to observe trading activities in this exceptionally volatile global and market environment. We will assess the situation and consider the necessary additional precautionary measures, as appropriate, to support an orderly market,” SC chairman Syed Albar Zaid said in a statement yesterday.

“This remains a short-term measure to provide stability and confidence. We remain committed to ensuring a conducive trading environment in our marketplace,” Bursa Malaysia chief executive officer Muhamad Umar Swift said.

Notwithstanding this temporary suspension, the SC and Bursa Malaysia reiterate the need for markets to remain open to ensure continued and reliable access to the Malaysian capital market, which is vital for immediate and long-term market confidence.

In a statement last week, the regulators said the wider market will continue trading to enable investors to manage their risks and opportunities during this period.

- Bernama