Sydney, 23  September, 2008: The Australian Bankers’ Association (ABA) said the Australian Securities and Investments Commission (ASIC) has been prudent in taking action on issues related to short selling, given the current market environment.

The ASIC announced  an interim ban on both ‘naked’ and ‘covered’ short selling.

David Bell, Chief Executive of the ABA, said: “ASIC’s action, which took affect during yesterday’s trading, was generally in line with similar actions by regulators in the US and the UK.”

“In the current circumstances, it was prudent that ASIC took this action so that Australia is generally not out of step with other international markets or at risk of unwarranted activity.”

“We are aware that there have been some concerns about the recent volatility in the market and some high levels of trading in some financial stocks. It is appropriate for ASIC to conduct investigations into market manipulation.”
 
The ABA will continue to work with the Federal Government on the introduction of a legislative disclosure regime, shortly to be introduced through the Corporations Amendment (Short Selling) Bill 2008.

ENDS