Adena Friedman, CEO of Nasdaq, recently received a letter from Devin Nunes, the CEO of Trump Media & Technology Group (DJT), expressing concerns about potential market manipulation involving the “naked” short selling of DJT shares. In the letter, Nunes raised concerns about sophisticated market participants profiting at the expense of retail investors through this practice.
While not directly accusing anyone, Nunes pointed out reports suggesting that DJT is the most expensive U.S. stock to short as of April 3, 2024. He identified four market participants responsible for a significant portion of DJT’s trading volume: Citadel Securities, VIRTU Americas, G1 Execution Services, and Jane Street Capital.
Nunes urged Nasdaq to take steps to ensure transparency and compliance by enforcing Reg SHO, requiring brokers to disclose their “Net Short” positions, and preventing the lending of nonexistent shares. Trump Media & Technology Group expressed readiness to support Nasdaq’s efforts in addressing these concerns.
The letter from Nunes highlighted the fact that DJT appears on Nasdaq’s ‘Reg SHO threshold list’, indicating possible unlawful trading activity. Nunes raised concerns about how sophisticated market participants are able to profit at the expense of retail investors through naked short selling without any accountability or consequences.
