Frequently Asked Questions
Short Selling
What is the possible action you can take to prevent CDP buy-in against your short sold position?
If you have a short sold position at the end of trading hours on sell trade day (T day), such short sold position cannot be covered by share purchase on T+1 or T+2 as the purchase delivery due date will not be in time to avoid CDP buy-in against the short sold position on settlement day (the second Market Day following trade day, or T+2).
To avoid CDP buy in against the short sold position on T+2, you may arrange for securities borrowing by T+1 before 10.30am.
Through Securities borrowing/lending facility (SBL) – subject to availability of the shares for borrowing, the borrowed shares can be used to deliver against the short sold position to prevent CDP buy-in on T+2. Shares need to be bought back on T+1 to return the shares borrowed from SBL. You will need to top up sufficient fund for any losses incurred and SBL charges by T+1.
For assistance, you may liaise with your respective Trading Representative.
For details on Securities borrowing and lending, please refer to Securities Borrowing Information Sheet or FAQ for Securities Borrowing.
Other faq that might help you
- How do I determine if my order is a normal sell or short sell?
- How should I indicate my short sell orders?
- How can I indicate a “short sell” order in POEMS platforms?
- Is it limited to SG market only?
- What if I short sell a counter and did not cover my position on the day itself?
- Are there any penalties on short-selling?
- Where can I view SGX published historical report on market short-selling data?
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