It wouldn't work while ASX or CHI-X allowed short selling. The market manipulators would still establish a short position and then conduct an ambush. The share price of all three exchanges would be linked because of arbitrage. So the share price of the stock on your new exchange would reflect the price in the manipulated market.
Far better to write to your local member and highlight the impact on employment and economic growth from short selling.
NEA Price at posting:
$2.49 Sentiment: Buy Disclosure: Held