The Investment and Financial Services Association (IFSA) is urging the Government to implement a permanent covered short selling disclosure regime as it reviews the area.

The association wants investors and fund managers to be compelled to report all of their aggregate short sale positions directly to the Australian Securities Exchange.

IFSA Deputy CEO John O’Shaughnessy says disclosure of short selling, which is often used as an investment position to create optimal returns for superannuation funds, is crucial in achieving pricing efficiency in the capital market.

“We consider that the disclosure of all aggregate short sale positions directly to the market supervisor will promote market integrity and confidence, while also assisting the surveillance of the market,” he said.