KUALA LUMPUR (Dec 17): Intraday short-selling (IDSS) and intraday short-selling by proprietary day traders (PDT short sale) will resume on Jan 1, 2022 as the Securities Commission Malaysia (SC) and Bursa Malaysia Bhd will lift the temporary suspension as scheduled.

The two temporary suspensions are scheduled to expire on Dec 31, 2021, following two extensions from its initial expiry of Feb 28, later Aug 29, 2021. The temporary suspension was put in place in March 2020 in view of the global equity rout then.

“Consequently, the PDT temporary waivers related to PDT short sale will no longer be applicable,” the two entities said in a joint statement.

“Effective Jan 1, 2022, the IDSS and PDT short sale will resume with enhanced control measures to ensure stability and orderly trading.

“In addition to the current short selling limits, IDSS and PDT short sale orders must be entered in accordance with the ‘at-tick rule’.

“Under the automated application of the ‘at-tick rule’, short selling orders will be executed at the best current asking price or higher,” the statement said.

Meanwhile, PDT short sale will only be permitted on securities that are listed as Approved Securities in the Main Market (Day Trading Eligible Securities), and where PDT already has in place an agreement to borrow the Day Trading Eligible Securities, the statement added.

“The SC and Bursa Malaysia will continue to monitor domestic and global developments affecting the securities market, and take a proactive approach in implementing measures to support a fair and orderly market,” the statement said.

According to Bursa Malaysia’s website, there are currently 241 Approved Securities for PDT short selling with effect from Nov 29.