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The Securities Commission Malaysia and Bursa Malaysia Berhad are extending the suspension on intraday short selling, due to expire on 28 February, until 29 August.
A blanket ban on short selling took effect on 24 March 2020 as part of the regulators’ response to heightened volatility and global uncertainties inspired by the COVID-19 pandemic.
After two extensions, the restrictions on regulated short selling were mostly removed as of 1 January 2021 apart from those relating to intraday trading which is used mainly as a day trading strategy.
The Malaysian boerse says the six-month extension will “promote market stability and strengthen the integrity of the capital market”.
The temporary waivers related to proprietary day traders will also be extended to 29 August.
Other restrictions still in place include the ‘dynamic and static price limits’, as well as the circuit breaker, which will remain until 30 May.
The temporary relief measures and flexibilities relating to margin financing are also not due to sunset until 30 June.
Regulators say they “continue to closely monitor ongoing domestic and global developments, and take a proactive approach in implementing appropriate measures that support a fair and orderly market”.
