What changed
The monthly report on short selling in government securities has been modified to capture changes in regulatory limits during the month, such as those from changes in outstanding stock or benchmark status. The revised format is provided as an annex to the circular. Submission of both soft copy and duly certified hard copy must now be made to the Financial Markets Department by the 8th of every month.
What it means for you
Banks and primary dealers need to update their internal reporting systems to track and report regulatory limit changes dynamically. This ensures compliance with short selling limits—0.25% of outstanding for illiquid securities and 0.50% for liquid ones, as classified by FIMMDA. Late or incorrect submissions could invite scrutiny.
What you must do
- Update your monthly short selling report template to include fields for regulatory limit changes during the month.
- Ensure the report is submitted in both soft copy and certified hard copy to the Financial Markets Department by the 8th of each month.
- Verify that your short positions never exceed the regulatory limits (0.25% for illiquid, 0.50% for liquid G-Secs) and that the report is certified by a concurrent or internal auditor.
Who it affects
Banks trading in government securities, Primary dealers, Compliance and treasury departments
What is the new deadline for submitting the short selling report?
The report must be submitted by the 8th of every month, in both soft copy and certified hard copy, to the Financial Markets Department.
What are the regulatory limits for short selling in G-Secs?
Short positions cannot exceed 0.25% of the outstanding stock for illiquid securities and 0.50% for liquid securities, as classified by FIMMDA.
Does this circular change any other terms from the previous circular?
No, all other terms and conditions from the earlier circular dated December 28, 2011 remain unchanged.