Document ID: chunk:federal_register_of_legislation:F2023C00208:reg:17:p1
Version: federal_register_of_legislation:F2023C00208
Segment Type: reg
Provision Reference: reg 17 (pt 1/14)
Character Range: 1403–4274

17  Short position reporting and short sale transaction reporting
Endnotes
Endnote 1—Instrument history
Endnote 2—Amendment history

Part 1—Preliminary

1 Name of legislative instrument
This is the ASIC Corporations (Short Selling) Instrument 2018/745.

3 Authority
This instrument is made under subsection 1020F(1) of the Corporations Act 2001.

4 Definitions
In this instrument:
Act means the Corporations Act 2001.
Regulations means the Corporations Regulations 2001.
section 1020B products has the meaning given by subsection 1020B(1) of the Act.

       Part 2—Short selling exemptions: market participants

5 Market makers: exchange traded funds and managed funds
    Part 7.9 of the Act applies in relation to section 1020B products as if section 1020B of the Act were modified or varied by, after subsection (4), inserting the following subsections:
"Market makers: exchange traded funds and managed funds
            (4A) Subsection (2) does not apply to an ETF market maker in relation to a sale of interests (the shorted product) in, or securities (the shorted product) of an exchange traded fund or a managed fund by the ETF market maker where both of the following are satisfied:
                (a) the sale occurs on a day where the operator of the fund or the foreign company (as applicable) allows applications for and redemptions of interests or securities in the same class as the shorted product;
                (b) the sale is in the course of making a market in the shorted product on a financial market operated by ASX Limited or Cboe Australia Pty Ltd.
             (4B) The ETF market maker must:
                  (a) before engaging in conduct in first reliance on subsection (4A), give a notice of reliance to ASIC;
                  (b) before making an offer to sell the shorted product, keep a record that states that the proposed sale will be a short sale, and preserve the record for 12 months after the day on which the last entry was made in the record;
                  (c) as soon as reasonably practicable after the sale of the shorted product but before the time for delivery of the shorted product, acquire or apply for a sufficient number of financial products in the same class as the shorted product to enable the ETF market maker to fulfil their delivery obligations under the sale;
                  (d) if the sales of shorted products by the market maker in reliance on subsection (4A) during a reporting period exceeds the settlement failure limit—give a settlement failure notice to ASIC within 28 days after the end of the reporting period;
                  (e) if the relevant market operator has given a notice of suspension or cancellation to the ETF market maker—give a copy of the notice to ASIC within 28 days of receiving the notice;
                  (f) if the operator of the scheme or the foreign company