CDU 0.00% 23.5¢ cudeco limited

lets stop short selling our shares, page-19

  1. 2,755 Posts.

    "scott, if you read the small print you will see that you have authorised your broker to lend the shares for short selling - or not, as the case may be. You are perfectly able to forbid your shares to be lent for short selling"

    "janti, well I called my broker (cmc) and they say it is not possible"

    How many people are in super funds run by major banks that have a portion of those funds in Australian shares thinking they are going long and at the same time these funds are lending the shares for shorts that are effecting the price to go the opposite direction.

    Also read the ASIC guide on reporting suspicious activity and this is exactly what Cudeco and others are doing but ASIC fail to act.

    "Under Rule 5.11.1, a market participant must notify ASIC if it has reasonable grounds to suspect that a person has placed an order or entered into a transaction while in possession of inside information, or which has the effect of creating or maintaining an artificial price or a false or misleading appearance in the market or
    price for trading in financial products".

    "The order is for a large volume of Company A shares, which are illiquid. Immediately after the client’s order is placed, an order for a similar volume at the same price is placed on the opposite side of the market. The effect is that the order is executed unusually quickly, given the size of the order and the limited liquidity in the stock. This may indicate that the trade is a ‘wash trade’."

    "We note that this may not always be indicative of suspicious conduct, as legitimate prearrangement of trades is often conducted for large volumes of illiquid stock."

    http://www.asic.gov.au/asic/pdflib.nsf/LookupByFileName/rg238-published-6-August-2013.pdf/$file/rg238-published-6-August-2013.pdf

    And will new disclosure on shorts have any effect?

    "The short sale tagging obligation will commence on 1 March 2014 and will require market participants to specify, at the time an order is placed, the quantity of a sell order that is a short sale. For on order book transactions, this will require specification of the number of products that are short at the time the order is placed into the market. For off order book transactions, the number of products that are short will need to be provided in the trade report provided to a market operator"



 
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