Trump Media And Technology Group has taken a bold step against the corrupt machinations of Wall Street. The company, which trades under the ticker DJT on the NASDAQ exchange, has issued a warning about potential market manipulation due to unethical short-selling activities.
In a letter addressed to NASDAQ CEO Adena T. Friedman last Thursday, Trump Media CEO Devin Nunes exposed how some traders are engaging in “naked short selling”. This is when investors purchase stock without first securing shares – a practice that is essentially prohibited in the United States. It’s high time regulators started cracking down on trading firms and ensuring they have securities at hand before initiating a short sale.
“I write to bring your attention to potential market manipulation of the stock of Trump Media & Technology Group Corp. (‘TMTG’), which operates the Truth Social platform and has traded on the Nasdaq Stock Market under the ticker ‘DJT’ since March 26, 2024,” states Nunes’ letter.
Nunes further pointed out that “DJT appears on Nasdaq’s ‘Reg SHO threshold list,’1 which is indicative of unlawful trading activity.” This is deeply disturbing as it suggests that “naked” short selling allows market insiders to profit at the expense of regular retail investors.
The letter goes on to say, “Reports indicate that, as of April 3, 2024, DJT was ‘by far’ ‘the most expensive U.S. stock to short,’ meaning that brokers have a significant financial incentive to lend non-existent shares.2 Data made available to us indicate that just four market participants have been responsible for over 60% of the extraordinary volume of DJT shares traded.”
The letter names four financial firms, including Citadel Securities, VIRTU Americas, G1 Execution Services, and Jane Street Capital, as being potentially involved in these nefarious practices.
“In light of the foregoing, and Nasdaq’s obligation and commitment to protect the interests of retail investors,3 please advise what steps you can take to foster transparency and compliance by ensuring market makers are adhering to Reg SHO, requiring brokers to disclose their ‘Net Short’ positions, and preventing the lending of shares that do not exist,” demands Nunes. “TMTG looks forward to assisting your efforts.”
Source: Trending Politics Conservative News and Commentary
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