Canada, the snakepit of naked short selling

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ElPrimero

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Canada, the snakepit of naked short selling

posted on Sep 19, 2008 09:11PM

I figure the naked short sellers have cost me thousands of dollars in my Canadian portfolio. Unless the regulators wake up and are accountable to the investing public's concerns, I see the Canadian exchanges being labeled the "naked short selling capitol of the world."

Posted On: Friday, September 19, 2008, 5:22:00 PM EST

In The News Today

Author: Jim Sinclair

Dear CIGAs,

If real action is taken covering all industry shares against the prolific naked short selling via the Canadian Exchanges who demand only that the broker ask the client if they plan (someday) to borrow the shares and never ask again, the pressure on junior mineral companies will come to an end.

The legal shorts can be handled by success on the ground, creative dividends, and in time splitting the companies into various companies assuming they have varied mineral interests. My counsel to this industry is if you are able, do it ALL.

If the TSX and Canadian regulators do not take these actions, I assume that any company capable of listing on another international exchange will have to de-list in Canada and list elsewhere where naked shorts are identified with teeth to protect the interest of their shareholders - the first duty of any management.

Contrary to the statement made here that naked short selling is illegal in Canada, the only control is that the broker must ask the clients if they intend to make delivery one time. The clients say yes and there is no follow up. Sure it is illegal however Canada is the powerhouse of naked short selling.