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Article: Regulators across Europe clash over bans on short selling

Article - Media

Regulators across Europe clash over bans on short selling

Philip Stafford, Laurence Fletcher, Robert Smith

Financial Times, 30 March 2020

France, Spain and Italy issued one-day prohibitions against betting on falling share prices for selected companies — and then longer bans of between one and three months, applied to all stocks listed on their domestic markets. Belgium, Austria and Greece swiftly followed suit, while Esma, the pan-European regulator, demanded tighter standards on reporting of short positions. Markus Ferber, an influential European MEP, urged a co-ordinated ban across the continent. But the clampdown has been partial.

Paywall Access to Article.

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Article: ASIC probes ‘naked’ short selling

Article - Media

ASIC probes ‘naked’ short selling

John Kehoe

Australian Financial Review, 23 March 2020

The securities regulator is looking out for illegal “naked” short selling by stock traders, in response to a rise in the number of investors failing to settle share trades during the recent financial market turbulence.

Naked short selling is illegal, and occurs when a short seller has executed a trade without a securities lending arrangement with a third party.

Companies with notable net short sales of their stock include Galaxy Resources (19 per cent), Syrah Resources (17.5 per cent), Metcash (13 per cent), Inghams Group (12.6 per cent), JB Hi-Fi (9.5 per cent), Costa Group (8.8 per cent), Myer (8.3 per cent), Perpetual (8.2 per cent), Bega Cheese (8 per cent), Bank of Queensland (7.8 per cent), Blackmores (7.8 per cent), Bendigo and Adelaide Bank (7.7 per cent), Webjet (7.7 per cent), Flight Centre (6.5 per cent), Kogan (6.5 per cent), Domino’s Pizza (6.2 per cent), Seek (6.2 per cent) and AMP (6.2 per cent) as of March 17, according to ASIC data.

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Article: Virus Prompts SEC To Ease Deadlines For Delayed Audit Trail

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Virus Prompts SEC To Ease Deadlines For Delayed Audit Trail

Law360.com, 18 March 2020

The U.S. Securities and Exchange Commission is extending a deadline for stock exchanges and other entities to enforce compliance rules involving a market surveillance project known as the “consolidated audit trail,” noting the massive stress on market participants caused by the coronavirus pandemic.

The consolidated audit trail, or CAT, is a massive database that will track real-time trading in the securities market. The project, which has been riddled with delays for years, is intended to help regulators prevent future market shocks like the May 6, 2010, “flash crash,” a brief but deep plunge in which the stock market lost about $1 trillion in wealth before recovering in 36 minutes.

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Paper: Market Manipulation and Directors Fiduciary Duty of Care

Paper

Market Manipulation and Directors Fiduciary Duty of Care

Market manipulation of emerging or small cap companies is pervaasive on Wall Street and according to the SEC has increased over 37% in the last decade. The nature and scope of market manipulation schemes is limited only by the creativity and audacity of their perpetrators.  While the substance and mechanics of market manipulation schemes may differ, the objective is the same – to inject false information into the marketplace that artificially affects the price of the  target companies securities by “interfering with the natural interplay of the forces of supply and demand.” The proliferation of market manipulation scshemes has created challenging risk-management and best practice issues for the directors of targeted companies, which require directors to continuously assess the nature and scope of their fiduciary duty of care.

Continue reading “Paper: Market Manipulation and Directors Fiduciary Duty of Care”

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Article: JPMorgan Facing Suit Over Spoofing Metals

Article - Media

JPMorgan Likely to Face Lawsuit for Precious Metal Spoofing

Zacks Equity Research, February 6, 2020

Per a Bloomberg’s article, JPMorgan Chase JPM is likely to face a criminal lawsuit over rigging precious-metals futures. The authorities that had previously accused six of the bank’s employees of the same misconduct are now planning to charge the company.

The Department of Justice and the Commodity Futures Trading Commission have been investigating the company’s precious metals desk’s trading practices for the past two years.

Continue reading “Article: JPMorgan Facing Suit Over Spoofing Metals”

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Book: Naked, Short, and Greedy – Wall Street’s Failure to Deliver by Susanne Trimbath

Book
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Rigged financial markets and hopeless under-regulation on Wall Street are not new problems. In this book, Susanne Trimbath gives a sobering account of naked short selling, the failure to settle, and her efforts over decades, trying to get this fixed.

Twenty-five years ago, Trimbath was working “backstage at Wall Street” when a group of corporate trust specialists told her about a problem in shareholder voting rights. When she went to senior management at Depository Trust Company (DTC), then and still the largest securities depository in the world, they brushed it off saying, “You can’t balance the world.”

Continue reading “Book: Naked, Short, and Greedy – Wall Street’s Failure to Deliver by Susanne Trimbath”

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Article: Credit Suisse to Pay $6.5 Mln for Direct Market-Access Violations

Article - Media

Credit Suisse to Pay $6.5 Mln for Direct Market-Access Violations

Regulators on Monday fined Credit Suisse Securities $6.5 million and censured it for failing to control and have procedures for monitoring over $300 million of trading orders it allowed broker-dealers and other institutional clients to enter directly to it on U.S. securities exchanges over four years.

The U.S. unit of the Swiss bank executed over 300 billion shares for its direct market-access  (DMA) clients from mid-2010 through mid-2014 without designing surveillance procedures to detect whether the orders were erroneous and potentially manipulative, the Financial Industry Regulatory Authority said in a letter of acceptance, waiver and consent signed by Credit Suisse.

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Fined: FINRA Fines Robinhood Financial, LLC $1.25 Million for Best Execution Violations

Fined

FINRA Fines Robinhood Financial, LLC $1.25 Million for Best Execution Violations

FINRA found that for more than a year, Robinhood—which offers its customers the ability to trade in equity securities without being charged commissions—routed its customers’ non-directed equity orders to four broker-dealers, all of which paid Robinhood for that order flow. This arrangement is known in the brokerage industry as payment for order flow.

Comment: Robinhood fined and just look what they do They let you trade for FREE how? Nothing is free in this world right, well they sell your order to another firm (the get paid for it) You get your trade for free everyone happy. BUT who wants your orders? You guess it NAKED SHORT SELLING firms. They trade against you order for example if your buying 5K of shares of SRNE on firday THE order is naked shorted by Them Never making it to the market at all. If you sell it and they are short. You can bet your kidney on it they will let that 5K go to the market and help drive it lower NEVER being the buyer. Thats the game. AND ROBINHOOD is helping the crooks for profit and screwing their own CLIENT.

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Article: Wirecard — Who’s Who of Bad Boys

Article - Media

Wirecard critics targeted in London spy operation

Miariam Jackson

The Union Journal, 11 December 2019

Two specialist traders, Matt Earl and Fraser Perring, co-authored the Zatarra report and therefore are one of the eight guys surveilled over recent weeks, combined with Mr [Crispin] Odey, Brett Palos, the stepson of merchant Philip Green, along with Nick Gold, a veteran stock exchange speculator.

Wirecard executives seem to have guessed a mole was working at a senior level within the firm after Mr Earl and Mr Perring released their Zatarra Report at 2016, prompting a criminal investigation from Germany into alleged market manipulation.

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Article: One of Wall Street’s most notorious short-sellers says Peloton will plummet 86%, citing ‘intense’ competition (PTON)

Article - Media

One of Wall Street’s most notorious short-sellers says Peloton will plummet 86%, citing ‘intense’ competition (PTON)

Carmen Reinicke

MarketInsider, 10 December 2019

 

  • Citron Research, run by the famed short-seller Andrew Left, slapped Peloton with a $5 price target on Tuesday.
  • That would imply an 86% drop from Monday’s close of $34.77.
  • Citron argued that the losses would come amid “intense” competition that’s mounting.
  • Shares of Peloton fell as much as 9.1% on Tuesday.

Comment:  Yelling fire in a crowded theatre is a crime A short and distort SELL REPORT How about selling his sell tickets IS he still short? his target is $5 right I bet he covered 10 min after his report . Andrew Left should be under investigation. His recommendations should be compared to his positions.

 

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Article: Berkshire Hathaway Bet Big on Dialysis Giant DaVita. Jim Chanos Thinks It’s a Scam

Article - Media

Berkshire Hathaway Bet Big on Dialysis Giant DaVita. Jim Chanos Thinks It’s a  Scam.

Christine Idzelis, Institutional Investor, 4 December 2019

DaVita provides life-extending dialysis treatment to more than 200,000 patients. But is it gaming the system through questionable donations to the American Kidney Fund?

Read full article.

Comment: Chanos is calling DVA a fraud. Stock was $59 it fell to $53.   Then it went to $115.    NICE WORK.  Buffet too big to cheat?

THE DOLLAR HAS NO INTRINSIC VALUE : DO YOUR ASSETS?