Federal Register of Legislation - Australian Government

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ASIC Class Order [CO 09/39]

Authoritative Version
  • - F2009L02077
  • No longer in force
CO 09/39 Orders/ASIC Class Orders as made
This Class Order amends ASIC Class Order [CO 08/751] to lift the ban on covered short selling of financial securities and makes technical amendments to the disclosure regime to acknowledge that exemptions to permit covered short selling will not be used once the ban is lifted.
Administered by: Treasury
Registered 25 May 2009
Tabling HistoryDate
Tabled HR28-May-2009
Tabled Senate15-Jun-2009
Date of repeal 11 Dec 2009
Repealed by ASIC Class Order [CO 09/1063]

Australian Securities and Investments Commission
Corporations Act 2001 — Paragraph 1020F(1)(c) — Variation


Enabling legislation

1.         The Australian Securities and Investments Commission makes this instrument under paragraph 1020F(1)(c) of the Corporations Act 2001 (the Act).


2.         This instrument is ASIC Class Order [CO 09/39].


3.         This instrument commences on the later of:

(a)        the date it is registered under the Legislative Instruments Act 2003; and

(b)        09:55 am Australian Eastern Standard Time on 25 May 2009.

Note:          An instrument is registered when it is recorded on the Federal Register of Legislative Instruments (FRLI) in electronic form: see Legislative Instruments Act 2003, s 4 (definition of register).  The FRLI may be accessed at http://www.frli.gov.au/.


Lifting of covered short selling ban

4.         Paragraph 4 of ASIC Class Order [CO 08/751] is varied by omitting notional section 1020BD of the Act.

Consequential variations

5.         Notional section 1020BC of the Act as set out in paragraph 4 of ASIC Class Order [CO 08/751] is varied as follows:

(a)                in subsection (2), omit paragraphs (b) and (c) and the note under that subsection, substitute:

“(b)      a covered short sale.

Note:       In some cases a sale may not be of either of these kinds because, for example, it is covered by an instrument made under section 1020F.”;

(b)               in subsection (3):

(i)                  omit subparagraphs (a)(ii) and (a)(iii), substitute:

“(ii)       a covered short sale; and”;

(ii)                omit subparagraphs (b)(ii) and (b)(iii), substitute:

“(ii)       a covered short sale.”;

(c)                in subsection (6):

(i)                  omit the definition of exempt covered short sale, substitute:

covered short sale means a sale of section 1020B products where at the time of the sale, the person making the sale has or, if the person is selling on behalf of another person, that other person has, a presently exercisable and unconditional right to vest the products in the buyer because of a securities lending arrangement entered into before that time.”;

(ii)                in the definition of reportable short sale omit paragraph (a), substitute:

“(a)      a sale of section 1020B products to which subsections (2) and (3) apply (see subsection (1)) that is a covered short sale; or”;

(iii)               omit the definition of short sale.



Dated this 25th day of May 2009





Signed by Anthony D'Aloisio
as a delegate of the Australian Securities and Investments Commission