**Trump Media & Technology Group Seeks Nasdaq's Intervention Against Alleged Market Manipulation
In a significant move to safeguard its stock from volatility, Donald Trump's media venture, Trump Media & Technology Group, witnessed a 3% rise in its shares following an urgent plea to the Nasdaq exchange. The company has stepped forward to address concerns over alleged unlawful market manipulation by "naked" short sellers, casting a spotlight on the rocky terrain of its stock performance since its market debut.
Trump Media & Technology Group lodged a formal complaint with Nasdaq CEO Adena Friedman, emphasizing the critical issue of "potential market manipulation". The alert to Nasdaq was made public through a recent filing with the Securities and Exchange Commission. This move comes as Trump Media shares experience heightened volatility, deviating significantly from their initial closing price of $57.99 on March 26.
At the helm, Trump Media CEO Devin Nunes, a former Congressman, pinpointed "naked" short-selling as a pivotal concern. Illegal in the United States, "naked" short selling entails the sale of shares without ensuring their prior borrowing or confirmation of their availability for borrowing. This practice bears the risk of the seller's potential failure to deliver the concerned shares, stirring up legality and fairness issues within the trading realm.
Highlighting a CNBC report from April 3, Nunes shed light on the exorbitant costs tied to shorting DJT, describing it as the "most expensive U.S. stock to short." Although specific evidence of naked short selling was not presented, Nunes brought attention to DJT's presence on Nasdaq's Reg SHO threshold list as of April 17, hinting at "indicative of unlawful trading activity."
Nunes refrained from naming specific entities involved but disclosed data pointing to four market participants, namely Citadel Securities, Virtu Americas, G1 Execution Services, and Jane Street Capital, as key players in the overwhelming volume of DJT shares traded, maneuvering over 60% of unique market activity.
In defense, a spokesperson for Citadel countered Nunes’s claims, emphasizing the institution's dedication to integrity as a core value. Meanwhile, Virtu Americas, G1 Execution Services, and Jane Street Capital stayed silent on the matter. Nasdaq has yet to issue any formal response but reinforced its commitment to liquidity, transparency, and integrity in a statement to CNBC, backing the SEC’s rules and enforcement efforts to curb naked short-selling.
The ongoing saga of Trump Media's struggle against alleged naked short selling underscores the complexities and challenges within today’s stock market regulations and the urgent calls for transparency and fairness in trading operations.
Analyst comment
Positive news: Trump Media & Technology Group witnessed a 3% rise in its shares after lodging a formal complaint against alleged market manipulation.
Short analysis: The market may see increased scrutiny on trading operations and regulations, potentially leading to more transparency and fairness.
