266 Exception for short selling and crossings

(1)

Short selling and crossings under the business rules of a licensed market do not contravene section 262 or 265 merely by reason of being short selling or crossings.

(2)

In this section,—

crossing, in relation to a transaction in financial products, means a transaction where a person acts as—

(a)

buyer and seller for that transaction in an agency capacity; or

(b)

buyer or seller on one side of that transaction in an agency capacity and as a principal on the other side

short selling means a sale of any financial product where, at the time of the sale,—

(a)

the seller does not have a presently exercisable and unconditional right to vest the financial product in the buyer except where the seller has an unconditional agreement to acquire that right before the date required to settle the sale; or

(b)

the financial product being sold has been borrowed and the seller has a presently exercisable and unconditional right to vest the product in the buyer.

Compare: SR 2007/373 rr 19, 20