Trump Media alerts Nasdaq to potential DJT stock manipulation

[Pelican Press 0]

Trump Media alerts Nasdaq to potential DJT stock manipulation

Jonathan Raa | Nurphoto | Getty Images

Trump Media has warned the CEO of the

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of ‘potential market manipulation’ of the company’s stock by “******”

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of shares.

The warning came as Trump Media has offered shareholders detailed instructions on how to avoid someone loaning out their DJT shares to short sellers, who then ******** trades ******** that the price of the stock will fall.

Trump Media disclosed the warning to Nasdaq CEO Adena Friedman in a filing Friday morning with the Securities and Exchange Commission.

DJT’s share price has rallied in recent days, but is still sharply lower than the more than $70 per share it debuted with on March 26. Former President Donald Trump owns nearly 60% of Trump Media shares. The paper value of his stake has dropped by billions of dollars since DJT began public trading last month.

Trump Media CEO Devin Nunes in his letter to Friedman did not directly accuse anyone in particular of ****** short selling, which is the ***** of stocks without first having borrowed such sales for that purpose.

But Nunes noted that as of Wednesday “DJT appears on Nasdaq’s ‘

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‘ which is indicative of unlawful trading activity.”

“This is particularly troubling given that ‘******’ short selling often entails sophisticated market participants profiting at the expense of retail investors,” Nunes said.

However, the

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on its website notes that a ******** to deliver shares as part of a short ***** trade, which can land a company on the Reg SHO threshold list, does not necessarily reflect improper trading activity like ****** short selling.

“There are many justifiable reasons why broker-dealers do not or cannot deliver securities on the settlement date,” the SEC notes in a section about Regulation SHO.

But in his letter, Nunes, whose company owns the Truth Social app, pointed to circumstantial evidence, which included DJT being in early April the

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to short in the ******* States, which he said would give brokers “significant financial incentive to lend non-existent shares.”

The letter links to a CNBC article detailing the sky-high premiums brokers were charging short sellers for loans of DJT shares to sell.

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“I write to bring your attention to potential market manipulation of the stock of Trump Media & Technology Group Corp.” Nunes wrote.

“As you know, ‘******’ short selling — selling shares of a stock without first borrowing the shares of stock deemed difficult to locate — is generally ******** pursuant to Securities and Exchange Commission (‘SEC’) Regulation SHO,” he wrote.

“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: Citadel Securities, VIRTU Americas, G1 ********** Services, and Jane Street Capital,” Nunes wrote.

DJT price for past month

“In light of the foregoing, and Nasdaq’s obligation and commitment to protect the interests of retail investors, 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,” Nunes wrote.

“TMTG looks forward to assisting your efforts.”

A Nasdaq spokesperson told CNBC, “Nasdaq is committed to the principles of liquidity, transparency, and integrity in all our markets.”

“We have long been an advocate of transparency in short selling and have been an active supporter of the SEC’s rules and enforcement efforts designed to monitor and prohibit ****** short selling,” the spokesperson said.

A spokesperson for Citadel Securities told CNBC, “Devin Nunes is the proverbial ****** who tries to blame ‘****** short selling’ for his falling stock price.”

“Nunes is exactly the type of person Donald Trump would have fired on ‘The Apprentice,’ ” the spokesperson said, referring to Trump’s former reality business competition show.

“If he worked for Citadel Securities, we would ***** him, as ability and integrity are at the center of everything we do,” the spokesperson said.

A spokeswoman for Trump Media in response to that said, “Citadel Securities, a corporate behemoth that has been fined and censured for an incredibly wide range of offenses including issues related to ****** short selling, and is world famous for screwing over everyday retail investors at the behest of other corporations, is the last company on earth that should lecture anyone on ‘integrity.’ “

A spokesman for Virtu Financial, the parent company of Virtu Americas, declined to comment.

G1 ********** Services, and Jane Street Capital had no immediate comment on Nunes’ letter,

Data from Factset shows that the short volume in DJT shares has not significantly changed since April 7, while the stock price has sharply dropped before seeing a pointed bounce in recent days.

Short volume is the number of tradable shares being sold short during a specific *******.

The data suggests that there was no change in the pattern of short selling that affected DJT’s price during that same time.

Trump, the presumptive *********** presidential nominee, currently is on trial in New York state court on ********* charges related to a 2016 hush money payment by his then-lawyer to the ***** actor Stormy Daniels.

Correction: This article has been updated to correct the spelling of Adena Friedman’s name.

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Business,Laws,Social media,Markets,Politics,Donald Trump,Donald Trump,Devin Nunes,Breaking News: Markets,Breaking News: Politics,Weather,Trump Media & Technology Group Corp,Virtu Financial Inc,business news
#Trump #Media #alerts #Nasdaq #potential #DJT #stock #manipulation

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