posted on
May 07, 2008 08:42AM
Be very careful trying to interpret "short positions" or "short interest" in Canada. None of the regulatory agencies here make any attempt, nor apparently do they they see it as part of their mandate, to assure that this data has any particular meaning. In particular, technical short interest, where there is no economic short interest is widely known to exist, and therefore high profile, flag-waving shorts, that are an economic "wash" should be presumed to exist. Current systems have no mechanism to check for wash trades or one sided disclosures, even on a test basis, nor in the current environment is this type of window dressing illegal .Without a single regulator with at least a "partial plate" for enforcement, you may be looking at carefully arranged tea-leaves.