Short selling relies on exchange price manipulation to work. Without it, short squeezes will obliterate short sellers.
The exchange price is manipulated via off-exchange transactions that are fed to the exchange to override the exchange price.
If exchange transactions are transactions between private parties that were initiated aand concluded away from the exchange and price discovery. There is no reason for them to be fed to the exchange, except to override the exchange price.
Investors in the exchange are not interested in the information and any information they should be aware of is already covered by SEC reporting requirements.
Companies are paying the exchange to be listed and are the reason for the existence of the exchange. They can demand that the exchange stop accepting transactions that we neither initiated not concluded on the exchange.
The power to stop this is in the hands of the CEOs, they do not need any regulatory body to stop it.
How do they stop it.. someone said it was up to the Ceo’s. . How does that happen. . This is a security matter. In the case of a public company the Sec is responsible to set rules on illegal shorts. Why can’t they do that? Basically useless, bought of beauocracy
2 Comments
Ignatius van Zyl
Short selling relies on exchange price manipulation to work. Without it, short squeezes will obliterate short sellers.
The exchange price is manipulated via off-exchange transactions that are fed to the exchange to override the exchange price.
If exchange transactions are transactions between private parties that were initiated aand concluded away from the exchange and price discovery. There is no reason for them to be fed to the exchange, except to override the exchange price.
Investors in the exchange are not interested in the information and any information they should be aware of is already covered by SEC reporting requirements.
Companies are paying the exchange to be listed and are the reason for the existence of the exchange. They can demand that the exchange stop accepting transactions that we neither initiated not concluded on the exchange.
The power to stop this is in the hands of the CEOs, they do not need any regulatory body to stop it.
don townsend
How do they stop it.. someone said it was up to the Ceo’s. . How does that happen. . This is a security matter. In the case of a public company the Sec is responsible to set rules on illegal shorts. Why can’t they do that? Basically useless, bought of beauocracy