SGX to report daily short-selling volumes

Move will alert investors and help pricing efficiency as bourse gets more transparent

By kenneth lim

 

                    

[SINGAPORE] The Singapore Exchange (SGX) will report daily short sales volumes for every counter beginning in March as it aggressively pursues leadership status in the field of risk management and transparency, the bourse announced yesterday.

In short-selling, traders borrow shares and sell them in the hope of buying them back cheaper in the future, thus profiting from a drop in the share price. With the rule, traders will have to tag as a short sale any trade in which the seller does not own the shares. SGX said it will publish daily reports on the total value and volume of short sales for each counter.