Schedule 1 Amendment
commencing on commencement of Corporations Amendment (Short Selling) Act
2008
(regulation 3)
[1] Part 7.9, after Division 14
insert
Division 15 Disclosure in relation to short sales covered by securities
lending arrangement of listed section 1020B products
7.9.99 Interpretation –
references to time
A reference in this Division to a time is a
reference to the legal time in Sydney, New South Wales.
7.9.100 Seller disclosure
(1) For paragraph 1020AB (3) (a) of the Act,
the particulars that a seller must give in relation to a sale of a listed
section 1020B product where the seller has a presently exercisable and
unconditional right to vest the product in a buyer under a securities lending
arrangement are as follows:
(a) the number of section 1020B products that
the seller will vest in the buyer under the arrangement;
(b) a description of the product;
(c) the name of the entity that issued the
product.
(2) For subparagraph 1020AB (3) (b) (i)
of the Act, in relation to particulars mentioned in paragraphs (1) (a),
(b), and (c):
(a) the seller mentioned in subparagraph 1020AB (1) (a) (i)
of the Act must give the particulars at the time of entering into an agreement
to sell; and
(b) the seller mentioned in subparagraph 1020AB (1) (a) (ii)
of the Act must give the particulars on or before 9 am:
(i) if the sale occurs after the start
of the trading day but before 7 pm — on the next trading day after
entering into an agreement to sell; and
(ii) if the sale occurs after 7 pm but
before the start of the next trading day — on the second trading day after
entering into an agreement to sell.
(3) A reference to trading day in
subregulation (2) is to a trading day of the market where the sale is executed
or reported.
7.9.101 Licensee disclosure
(1) For paragraph 1020AC (2) (a) of the Act,
the particulars that a financial services licensee must give in relation to
information given to the licensee under section 1020AB of the Act in relation
to a sale of a listed section 1020B product is the information specified in
paragraphs 7.9.100 (1) (a), (b) and (c).
(2) For paragraph 1020AC (2) (b) of the Act:
(a) the time for disclosure of the information
is on or before 9 am:
(i) if the information is given to the
licensee after the start of the trading day but before 7 pm — on the
next trading day after the licensee is given the information under section
1020AB of the Act; and
(ii) if the information is given to the
licensee after 7 pm but before the start of the next trading day — on
the second trading day after the licensee is given the information under
section 1020AB of the Act; and
(b) the manner for disclosure of the information is
by electronic transmission to the operator.
(3) A reference to trading day in
subregulation (2) is to a trading day of the market where the information is
given.
7.9.102 Public disclosure of
information
(1) For paragraph 1020AD (2) (a) of the Act,
the particulars which the operator of a licensed market must publicly disclose in relation to information given to
the operator under section 1020AB or 1020AC of the Act in relation to
a sale of a listed section 1020B product are the total number of each kind of
section 1020B product that has been sold on a particular day and disclosed to
the operator under section 1020AB or 1020AC of the Act.
(2) For subparagraph 1020AD (2) (b) (i) of
the Act, the time for the disclosure of the information mentioned in
subregulation (1) is:
(a) if the information is given to the licensee after
the start of the trading day but before 7 pm — on the next trading
day after the day the agreements to sell were entered into; and
(b) if the information is given to the licensee
after 7 pm but before the start of the next trading day — on the
second trading day after the day the agreements to sell were entered into.
(3) A reference to trading day in
subregulation (2) is to a trading day of the market in relation to which the
operator is responsible for disclosure of the information.
(4) For subparagraph 1020AD (2) (b) (ii)
of the Act, the manner of public disclosure of the information mentioned in
subregulation (1) is by publication:
(a) on the operator’s website; or
(b) in any other form that is easily accessible by
the public.
Schedule 2 Amendments commencing on the day specified by the Minister
by instrument in writing
(regulation 4)
[1] Regulation 7.9.99
substitute
7.9.99 Interpretation
(1) In this Division:
reporting day, in relation to a short
position, means a day on which the Sydney office of ASIC is open for business.
Meaning of short position
(2) In this Division, a short position is
a position in relation to a section 1020B product in a listed entity where
the quantity of the product which a person has is less than the quantity of the
product which the person has an obligation to deliver.
(3) In subregulation (2), the person has the product if:
(a) the person is holding the product on the
person’s own behalf; or
(b) another person is holding the product on the
person’s behalf; or
(c) the person has entered into an agreement to
buy the product but has not received it; or
(d) the person has vested title in the product in
a borrower, or in an entity nominated by the borrower, under a securities
lending arrangement.
(4) In subregulation (2), the product which the person
has an obligation to deliver is the product which the person:
(a) has an obligation to deliver under a sale
agreement where the product has not been delivered; or
(b) has an obligation to vest title in a lender under
a securities lending arrangement; or
(c) has any other non-contingent legal
obligation to deliver.
References to time
(5) A reference in this Division to a time is a
reference to the legal time in Sydney, New South Wales.
[2] Paragraph 7.9.100 (1) (c)
omit
the product.
insert
the product;
[3] After paragraph 7.9.100 (1) (c)
insert
(d) the seller’s short position as at the close
of business 3 reporting days before the day the particulars must be given
under subregulation (4).
[4] After subregulation 7.9.100 (3)
insert
(4) For subparagraph 1020AB (3) (b) (i)
of the Act, in relation to particulars mentioned in paragraph (1) (d), the
seller must give the particulars:
(a) on or before 9 am on the third reporting day
after entering into the agreement to sell that causes the short position to
occur; and
(b) on or before 9 am on each subsequent reporting
day as long as the seller has a short position.
(5) Paragraph (4) (b) applies whether or not
the particulars about the short position have changed from that given on the
previous day.
(6) For subparagraph 1020AB (3) (b) (ii)
of the Act, in relation to particulars mentioned in paragraph (1) (d), the
seller must give the particulars in the form required by ASIC.
(7) For subparagraphs 1020AB (4) (a) (ii) and
(b) (ii) of the Act, in relation to the particulars mentioned in paragraph
(1) (d), the entity is ASIC.
[5] After regulation 7.9.100
insert
7.9.100A Seller disclosure of
existing short position
(1) If a seller has a short position which arises from
an agreement to sell, entered into before commencement of this regulation, the
seller must give particulars about the short position as at the close of
business on the day this regulation commences:
(a) on or before 9 am on the third reporting day
after commencement of this regulation; and
(b) on or before 9 am on each subsequent reporting
day as long as the seller has a short position.
(2) The particulars must be given to ASIC in the form
required by ASIC.
[6] After subregulation 7.9.102 (1)
insert
(1A) For paragraph 1020AD (2) (a) of the Act, the
particulars which ASIC must publicly disclose in relation to information given
to it under section 1020AB of the Act in relation to a sale of a listed section
1020B product are the total of all short positions in a product issued by a
listed entity that have been disclosed to ASIC under section 1020AB of the Act
on the previous reporting day.
[7] After subregulation 7.9.102 (3)
insert
(3A) For subparagraph 1020AD (2) (b) (i) of
the Act, the time for the disclosure of the information mentioned in
subregulation (1A) is the first reporting day after the day the
information is received.
[8] After subregulation 7.9.102 (4)
insert
(5) For subparagraph 1020AD (2) (b) (ii)
of the Act, the manner of public disclosure of the information mentioned in
subregulation (1A) is by publication:
(a) on ASIC’s website; or
(b) in any other form that is readily accessible by
the public.