TR BRIEFING AGENDA. Marking of Short Sell Orders. For Internal Circulation only

Transcription

1 TR BRIEFING AGENDA Marking of Short Sell Orders

2 What is Short Selling? Selling a share that you do NOT own at the time of sale If you execute a Sell in the morning and perform a buy back in the afternoon, it is still considered a Short sell.

3 Why Mark short sell orders? New SGX requirement to enhance greater transparency in the market Reduce risk of manipulative or unfair trading practices Before the start of each Market Day, SGX will publish the total volume and value of short sales for each counter that was executed the previous trading day

4 Who are required to Mark short sell orders? All SGX-ST trading members All Trading representatives All investors In short, ALL market participants * Exemption only for designated Market Makers

5 When will the new requirement be implemented? 11 March 2013

6 What penalties are applicable if short sell orders are not Marked? Rule Violation 1 st violation 2 nd violation 3 rd violation 8A.3.1 TR is not to enter a sell order in the system if customer did not indicate whether the sell order is a Short Sell order or a normal sell order $250 $500 $1,000 8A.3.2 TR is not to report Direct Business through the married trade system if the customer did not indicate whether the Direct Business sell order is a Short Sell order or a normal sell order $250 $500 $1,000

7 How to Mark Short Sell Orders? Poems Internet 1.0 If client chooses Sell: Short Sell checkbox appears on the screen:

8 To indicate short sell, simply select the short sell checkbox; Note: If short sell checkbox is unchecked, order will be submitted as a normal sell order

9 POEMS Internet 2.0 Short sell checkbox is displayed between the Buy and Sell button:

10 Poems Mobile 2.0, iphone / ipad / Android Short sell checkbox is displayed between the Buy and Sell button:

11 Protrader Short sell button displayed in the Trade page:

12 POEMS Mobile Web 1.0 Short Sell will be included as a third option selection in the Action selection :

13 Kinetics Short sell button display at kinetics page:

14 Telebroker Client to call Enter account no & password > select trading > select SGX > 3 options to choose > Buy / Sell / Short Sell

15 GL

16

17 MSF Only when select Sell the Short Sell indicator will appear

18 What happens if TR / client Mark short sell orders wrongly? If clients mark short sell orders wrongly in Poems, they are to call their TRs for assistance TR to perform corrections via MSF > CARES > Client > Marking Short Sell Order Corrections must be done on T+1 by 4.00 pm

19 1. If TR selects Yes Marked Short Sell Done Qty must be greater than 0

20 2. If TR selects No Marked Short Sell Done Qty must be equal to 0

21 *Marking of Short Sell Orders* Holdings Sell Order Qty Marked (Y/N) Sell Done Qty Marked Short-Selling Done Qty Actual Short-Selling Done Qty 1 0 N 7, , Y 7,000 NA NA 3 0 N Y NA NA 5 5,000 N 3,000 NA NA 6 5,000 Y 3,000 3, ,000 N 0 7, ,000 Y 7, ,000 N 5,000 NA NA 10 15,000 Y 5,000 5, ,000 N NA NA 12 15,000 Y 0

22 Suggested script for TRs when clients wish to place a Sell order request KC/ Cash accounts: Dear client, do you have the shares? If you are unsure, please check with CDP to confirm your latest shareholdings. Is this a normal sell or short sell order? Sub-accounts ie Margin / Custodian / Phillip Financial Is this a normal sell or short sell order?

23 For more information, please refer to FAQs on SGX website at Top right corner ---- FAQs Marking of Sell Orders