As a result of actions by overseas regulators, ASIC has extended the disclosure requirements for covered short selling announced on 19 September into a ban. [Class Order 08/752]

ASIC has made the following decisions to apply from the opening of the market in Australia on Monday, 22 September 2008 until the End Date (30 days initially):

1. Contrary to ASIC’s announcement on Friday, covered short sales for all listed stocks will now not be permitted (subject to a limited authorised market-maker exception)
2. ASIC will reassess and advise the market in 30 days, whether or not it will at that time, or at a later date, reopen covered short sales for non-financial stocks.

UPDATE 22 September 2008: ASIC clarifies that the prohibitions on covered short sales will not apply to hedging a position that was taken by an entity prior to 22 September 2008.

Summary of ASIC’s new position on short selling until the End Date

• naked short selling banned
• covered short selling banned (subject to limited authorised market-maker exemption)
• ASIC will reassess and advise the market in 30 days, whether or not it will at that time, or at a later date, reopen covered short sales for non-financial stocks.