Bursa to broaden short-selling of ETFs by Jan 2 – Enterprise Information

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Bursa to expand short-selling of ETFs by Jan 2 - Business News


KUALA LUMPUR: Bursa Malaysia Bhd is increasing the  exchange-traded fund (ETF) framework which is able to enable permitted short-selling (PSS) of of latest kinds of ETFs from the present equity-based ETFs now. 

The inventory trade introduced on Friday the revised Pointers on Change-Traded Funds will now enable ETFs that are futures-based, artificial, bodily commodity and good beta.

It stated the ETF amendments will take impact from Jan 2, 2019 onwards. 

Bursa stated the transfer would guarantee better enterprise efficacy and cut back the price of compliance by ETFs. 

It will additionally enhance the ETF business while enhancing investor safety and transparency; and facilitating market making actions for all ETFs by way of the improved PSS framework. 

This could additionally enable interim reporting frequency from quarterly to semi-annual foundation.
 
Issuers should additionally improve the contents of ETF interim and annual experiences arising from the brand new kinds of ETF merchandise and their particular necessities to advertise significant and value-add data to unit holders.
The framework will introduce qualifying standards for buyers buying and selling in leveraged and inverse ETFs.

Bursa Malaysia chief govt officer Datuk Seri Tajuddin Atan stated the revolutionary ETF merchandise could be good for the ETF market and may result in a extra vibrant ETF ecosystem. 

“The ensuing enhancements to the framework enhances our ongoing market growth initiatives to offer an environment friendly and efficient ecosystem for ETFs in addition to diversified product vary for our buyers,” he stated,
 
“In tandem with this, we’re additionally specializing in investor consciousness and schooling as we imagine that that is essential for the ETF business to take off,” he added. 

Bursa has been educating buyers on ETF for the previous few years. It has reached out to over 15,700 buyers by way of 165 ETF workshops and seminars particularly over these final two years. 
 

 



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