RE:Short positionAll I ever wanted to know about shorting in Canada. An October 2019 (recent) report.
https://www.mcmillan.ca/webfiles/An%20Analysis%20of%20the%20Short%20Selling%20Landscape%20of%20Canada.pdf
It's not light reading, but interesting nontheless, even without understandig it all yet. I would certainly like to see more timely and informative data made available/transparent. The report does not address activity that I believe occurs, wherein shorting is used to lower the price leading to a private placement. That could also be remedied by new rules for raising funds IMO.
The final recommendations.
"8.6 Recommendations In summary, in order to improve investor confidence and market efficiency while appropriately reducing systemic risk, we would recommend that certain changes be made to the regulations in Canada governing short selling.
First, we would recommend that the following revisions be made to UMIR: 1. impose locate or pre-borrow requirements with respect to short sales, subject to limited exceptions; 2. disclose aggregate short position and trade data per issuer daily; 3. disclose failed trade data daily; 4. to the extent EFTs are used, lower the failure to settle window; and 5. impose monetary penalties in connection with failures to close out failed trades.
In addition, we would recommend that the CSA: 1. regulate such that other Canadian market participants, such as custodians or other institutions that are members of CDS, must disclose daily short trading data; and 2. require all Canadian trading venues to disclose short trading data per issuer daily.
Notwithstanding our recommendations, we do acknowledge that regardless of how IIROC proceeds with regulatory changes, from a practical perspective, it may be necessary for IIROC to retain an independent and qualified third party to undertake a new study as a foundation for changes to the Canadian short selling regulatory regime. Nevertheless, we remain skeptical that a singular focus on market-wide failed trade data will be determinative.
Finally, we implore the OSC to increase enforcement activity. We also strongly encourage the CSA to evaluate (including by seeking commentary from market participants) whether it is appropriate to create a statutory private right of action that allows investors to recover losses from those who manipulate our markets with misleading information."