SFC announces the commencement of short position reporting

1 Jun 2012

The Securities and Futures Commission (SFC) today announced that the Securities and Futures (Short Position Reporting) Rules (Rules) (Note 1), except for publication of the aggregated short positions data under Rule 6, will come into effect on 18 June 2012.

Market participants must report short positions using an online system developed specifically for this purpose (Note 2), which will go live on 18 June 2012. A specified form that they must use for the reporting has been posted on the SFC’s website. To assist with compliance, the SFC has released a guidance note explaining how certain aspects of the Rules operate (Note 3).

To help market participants become familiar with the online reporting system and test their internal systems and procedures, the SFC has made available a pilot testing environment since 7 May 2012 (Note 4).

“Short position reporting will better equip us to effectively monitor short selling activities in the Hong Kong market,” said Mr Ashley Alder, the SFC’s Chief Executive Officer. “As the regime is coming into effect very soon, those affected should be fully prepared for the new requirement and are strongly encouraged to take part in the pilot test.”

The SFC proposes to commence publishing data on aggregated short positions under Rule 6 on 7 September 2012, subject to the legislative process (Note 5).


1. The Securities and Futures (Short Position Reporting) Rules (L.N. 48 of 2012) can be viewed online via Hong Kong’s Department of Justice Bilingual Laws Information System: http://www.legislation.gov.hk/eng/home.htm
2. The online reporting system, Short Position Reporting Service, is available on the SFC Online Services.
3. The Guidance Note on Short Position Reporting has been published in the Gazette.
4. The pilot test will end on 8 June 2012.
5. The notice to commence the operation of Rule 6 has been published in the Gazette and will be tabled in the Legislative Council for negative vetting.

Page last updated : 1 Aug 2012