What Is Intraday Short Selling (IDSS)

Under the IDSS framework, investors are able to sell securities first and buy them back later within the same trading day.

Approved Securities for IDSS

IDSS can be carried out on a selected list of Bursa-approved securities. The list is reviewed and revised periodically by Bursa Malaysia.

Documents Required for IDSS Application

The following forms must be completed and submitted to a dealer representative:

• Application Form for Intraday Short Selling
• Intraday Short Selling Risk Disclosure Statement
• Securities Borrowing and Lending (SBL) Agreement

The forms can be downloaded here.

IDSS Access for UOB Kay Hian Trading Accounts

A UOB Kay Hian trading account does not have access to IDSS by default (see "Documents Required for IDSS Application" above for the application process).

Restrictions on IDSS

IDSS is not applicable to:

• Margin Clients
• Direct Business Transactions
• On Market Married Transactions
• Odd lot

Closing the Short Position for IDSS

It is best to close the short position by 4:30pm. If the position is not closed before 4:45pm, the market enters matching time (pre-closing) and the shares may not be able to be bought back by 4:59pm, since the period from 4:50pm to 4:59pm is trading at last, during which all stocks are traded at the last price.

Mandatory Same-Day Closure of IDSS Positions

All IDSS positions must be closed off during the day.

• It is considered a breach of Bursa Rules if an IDSS position is not closed off, even if free shares are available in the CDS Account with UOBKH.
• Recalcitrant accounts will be suspended from IDSS.

Failure to Close the Short Position Within the Day

If an IDSS position is not closed off on the same day, the client's dealer's representative must be informed to carry out one of the following actions, unless the shares are already held in the client's CDS account with UOBKH:

• Buying in the shares
• Transferring shares from the client's CDS account with other brokers or from an immediate family member's CDS account to cover the short position, or
• Requesting UOBKH to borrow shares on the client's behalf from the Approved Shares Lender.

Notes:

• The borrowing of shares is subject to availability.
• Carrying out any of the above actions to rectify the unclosed position is still considered a breach of Bursa Rules (see "Mandatory Same-Day Closure of IDSS Positions" above).

Cost of Borrowing Shares

Initiation of share borrowing – RM400.00 per initiation.

Interest rate for share borrowing – 2% to 15% p.a. plus the company's cost of fund on the Mark to Market (MTM) value of the borrowed shares.

Transfer fee – RM31.80.

A Debit Note is raised on T+4 to charge the borrowing cost.

IDSS Trading Limit

70% of the client's Trading Limit.

The client's buy limit is automatically increased by the IDSS amount.

This increase in buy limit is intended to allow the client to buy back IDSS shares.

Account Types Eligible for IDSS

Cash Up Front Account

Collateralised Account

Normal Account

Brokerage Fee for Intraday Short Selling

There is no additional fee for IDSS. Brokerage fees vary depending on the type of trading account; clients may contact their dealer representative for more information.

Identifying IDSS Securities on Live Quote

The symbol "^" represents IDSS securities and appears beside the stock name on the live quote.

IDSS Symbol ("^")

New Order Type for IDSS