The SEC now aims to guide Asia on illegal short selling, which has raised many concerns primarily back in U.S soil.
The Securities and Exchange Commission has failed to tackle the root of the problem back at home, prompting investors to question the SEC’s authority overseas.
Bangkok Post reports that the Securities and Exchange Commission has asked the Association of Securities Companies (ASCO) members to “adjust their short sell guidelines based on the SEC’s instructions.”
Asco has reaffirmed “there is no naked short selling on the Thai exchange.”
Asco president, Pichet Sithi-Amnuai said the Stock Exchange of Thailand (SET) has regularly examined short selling in cooperation with Asco, and has confirmed there is no naked short selling.
SEC Secretary-General Pornanong Budsaratragoon said the regulator asked Asco members to adjust their short selling guidelines based on a notice from the SEC.
Asco on the other hand suggested the SEC look into the low commission fees offered by some brokers back at home to ensure a level playing field among investors.
SET President Pakorn Peetathawatchai said, “the Thai stock exchange will not allow naked short selling to take place.”
“If anyone is found using this method, we will punish them severely.”
Public perception of such trading practices in the Asian nation remains deeply negative, with local retail traders staging protests against these activities from time to time.
In the United States, naked short selling continues to be a big problem.
In September, Citadel Securities was charged for illegal short selling violations by the SEC.
However, entities such as Citadel merely ‘pay a fine to play’.
Asia has a much stronger protection policy for its investors against naked short selling compared to the United States, earning the respect from investors overseas.
Companies Affected by Naked Short Selling in The United States
Since the ‘meme stock frenzy’ of 2021, retail investors have raised concerns of naked short selling in GameStop and AMC Entertainment stock.
Ex-Citadel data scientist Patrick McConlogue says Citadel and others were able to make their money back during the trading halts, cheating investors out of their money.
Stocks such as AMC and MULN (Mullen Automotive) have been on the NYSE Threshold Securities List many times over, a clear sign a stock is being manipulated by naked shorts, says Yahoo Finance’s Jared Blikre.
A recent case that has taken regulators by a surprise is that of the MMTLP scandal.
Investors allege the strong probability of illegal short selling in the ticker after transcripts between the FINRA and the SEC were leaked of a fraud investigation that was occurring just moments before the U3 halt and delisting of MMTLP.
Companies such as Genius Group, FingerMotion and Global Tech Industries have also been open about illegal short selling investigations.
As more businesses come forward about the market injustices they are experiencing within their company’s stock ticker, the more we begin to realize just how bad the US fraud in the stock market is.
Market News Published Daily 📰
Don’t forget to opt-in for push notifications so you don’t miss a single article!
Also, thank you to all of our blog sponsors.
This year we’ve been able to increase push notifications slots making it more convenient than ever for new readers to receive their daily market news and updates.
Scroll below to view my stock purchases this month!
Wondering which stocks Frank Nez is holding? Which stocks is Frank Nez buying?
Frank Nez is now sharing his exclusive and personal stock portfolio with readers, only on the Patreon.
11/16/2023 – Today I invested $1,000 in two different stocks for a brand new stock dividend portfolio I am creating for 2024.
Recommended For You ✨
- California Now Has Massive Departures As Hundreds of Thousands Leave
- A Massive Bank Now Closes Several Branches in Florida
- Chase Customers Now Unable to Access Money Through ATMs
- The US Treasury Direct is Now Freezing Customer Accounts
- Wells Fargo is Now Freezing Bank Accounts in New Scandal
- A US Company Now Declares An Unexpected Bankruptcy