Frequently Asked Questions

Short Selling

How do I determine if my order is a normal sell or short sell?

A Short Sell Order refers to any sell order where the seller does not own the security to be sold at the time of placing the order.

How should I indicate my sell orders?

If you intend to sell more shares than the quantity you own, you should submit separate sell orders. You should place a normal sell order for the shares which you own and a short sell order for the quantity that you do not own.

Scenario:

  1. You do not own any share of Stock A and you intend to short sell 1,000 shares of Stock A. You have to submit a sell order of 1,000 shares by marking the “Short Sell” checkbox or click on the “Short Sell” button.

  2. You owned 2,000 shares of Stock A and you intend to short sell another 1,000 shares of Stock A. You have to submit a normal sell order of 2,000 shares, and separately submit another sell order of 1,000 shares by marking the “Short Sell” checkbox or click on the “Short Sell” button.

How can I indicate a “short sell” order in POEMS platforms?

  1. POEMS 2.0
    Select the "short sell" checkbox.
  2. POEMS Mobile
    Use the "short sell" button to execute the trade.
Alternatively you can call in and ask your Trading Representative to submit a Short Sell order.

Is it limited to SG market only?

Yes, “Short Sell” indication is limited to SG market only.

While I already own the shares, what if I marked the “Short Sell” checkbox wrongly and the order has been executed?

You are required to inform your Trading Representative immediately once you discover your executed sell trades have been marked wrongly.

What if I short sell a counter and did not cover my position on the day itself?

SGX will regard the sale transaction as a short-sell and will conduct a buying-in on due date.

Are there any penalties on short-selling?

If you do not have the required shares in your account for delivery on the Settlement Day (the second Market Day following the trade day, or T+2), CDP will buy-in shares on the market to satisfy the delivery obligation. Buying-in shall commence at the time scheduled by CDP on the Settlement Day or the following and successive Market Days.

price of the previous day – the reference transacted price or the reference bid price. If the securities are not obtained, CDP shall have absolute discretion to raise the price bid by 2 minimum bids, as determined by SGX-ST, from time-to-time throughout the Settlement Day until the securities are bought or delivered to CDP.

If the securities cannot be obtained during the Settlement Day, the buying-in shall continue on the following and successive Market Days at 2 minimum bids, as determined by SGX-ST; higher than the buying-in bid price at the close of the Settlement Day or the previous Market Day. Thereafter, CDP shall have absolute discretion to raise the buying-in bid price by 2 minimum bids, as determined by SGX-ST, from time to time throughout the Market Day until the securities are bought or delivered to the CDP. If the securities cannot be obtained by the close of the second Market Day, CDP may require the Short-Seller to procure the securities within the time stipulated by CDP.

SGX will impose a penalty of S$1000 or 5% of the value of the failed trade (whichever is higher) for all buy-ins. A processing fee of S$75 + GST for each failed contract and a brokerage fee of 0.75% + GST of contract value (for the buying-in contract) will be imposed by SGX.

For further information or clarification, please contact your trading representative.