Hong Kong – 18 June 2012 – TORA, a leading provider of advanced trading technology and financial services, has announced the introduction of a reporting solution for the hedge fund community to help meet new regulatory requirements in Hong Kong that call for short selling positions to be reported starting from today.
The TORA solution enables hedge funds to meet the Hong Kong Securities and Futures Commission’s (SFC) compulsory requirements by consolidating a report of short positions which comply with both the SFC’s approved list of equities, which can be shorted, and the newly prescribed reporting thresholds*. The report tool seamlessly integrates with the TORA Compass™ execution and order management platform to generate reports on demand or scheduled reports for the weekly or daily requirement set by the SFC.
“The hedge fund community in Hong Kong is preparing for a significant change in how they report trades and TORA has responded by providing a solution that is both efficient and effective,” says Chris Jenkins, TORA’s managing director for Asia Pacific. “The new requirements are part of a growing trend of regulators seeking to capture increased data to help in their role, which includes developing a deeper understanding of market behaviour. We have seen similar reporting initiatives led by ASIC in Australia. This also prompted TORA to introduce a solution for hedge funds to meet regulatory obligations when trading domestic equities.”
The new rules from the SFC come into effect today, 18 June 2012, with the first reporting day of net short positions on 22 June 2012 and a T+2 reporting deadline on 26 June 2012. Net short positions are then required to be reported weekly with a contingency for the SFC to enforce daily reporting in the event, for example, of a rapid market decline.
* A net short position is required to be reported if it hits the threshold of either 0.02% of the issued share capital of a listed company, or a market value of HK$30 million, whichever is lower.
TORA is a leading provider of advanced trading technology and financial services. TORA’s unrivalled solutions span the entire trading process, offering a full suite of trade execution capabilities in markets across Asia, North America and Europe. TORA’s high-performance EMS/OMS has been designed from the ground up by traders, and is currently used by traders at hedge funds, long-only funds and sell-side proprietary trading desks. TORA also provides clients with access to its unique liquidity pools including Asia’s leading non-displayed matching engine. TORA’s dedicated Asia trading desk delivers to buy-side clients unmatched Asia expertise and extensive analytics focused on best execution. TORA’s extensive suite of proprietary algorithms (trading and strategy-focused) is fully customizable and broker neutral. TORA has over 175 employees dedicated to Asia, with offices in Tokyo, Hong Kong, Singapore, Sydney, Romania, New York, Los Angeles and San Francisco. www.stage.toratrading.tw.
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