This is an email I sent to llroc on Sept 9
Dear Sirs/Madams: I am an investor in PYR and HPQ on the venture exchange. It has become obvious to me the share price of both stocks have been and are being manipulated. On Aug 24 2020 Pyr was halted because a warning was triggered. So I am aware you are aware of the blatant manipulation of this and Hpq’s share price? My question is, do you really think this practice is good for the stock market and the retail share holders? Even both Ceo’s have commented on the shorting of their stocks, some supposedly Naked Shorting going on which I believe to be illegal…right? So my question to you is what are you doing or what are you going to do about this? Sincerely, RR
This is the reply that I got today soon after Bernard called them out today. Dear Mr. Robert,
Thank you for your email regarding the recent trading activity in Pyrogenesis Canada Inc (PYR) and HPQ-Silicon Resources Inc (HPQ). My apologies for the delay in responding. We will review the information you have provided.
Short Sales Short sales are permitted in Canada, however, naked short sales are not.
Here are some of the steps IIROC has taken to enhance monitoring short sales and failed trades:
- Effective June 1, 2011, IIROC implemented a web-based system for the reporting of “Extended Failed Trades”, defined as trades which the client has failed to resolve within 10 business days following the regular settlement date, that helps to identify “problem” fails and allow IIROC to assess the reasons for the failure and monitor the steps being taken to resolve the problem.
- IIROC deployed a new surveillance alert which looks for declines in the price of a security associated with changes in the rate of short selling, based on a comparison to historical short selling patterns for the particular security.
- CDS Clearing and Depository Service Inc. (“CDS”) is providing to the Ontario Securities Commission data on daily trade failures for trades settling in the continuous net settlement facilities (“CNS”) of CDS.
- If an Extended Failed Trade report has been filed previously at any time by a Participant with IIROC with respect to an Extended Failed Trade in the account of a client or non-client, that client or non-client would not be able to enter an order that on execution would be a short sale without having made arrangements to borrow the securities necessary to settle any resulting trade unless the Participant through which the order is to be entered on a marketplace is satisfied, after reasonable inquiry, that the reason for any prior failed trade was not as a result of any intentional or negligent act of the client or non-client.
- If a Participant or Access Person has filed previously at any time a report of an Extended Failed Trade in respect of a principal trade by that Participant or Access Person in a particular security, the Participant or Access Person would not be able to enter an order that on execution would be a short sale without having made arrangements to borrow the securities necessary to settle any resulting trade unless IIROC has consented to the entry of the principal order that is a short sale of that particular security.
Further information concerning short sale amendments and rules, including pre-borrow requirements can be found here:
https://www.iiroc.ca/Documents/2012/7026f168-80c3-45ea-a635-55b8802dbbaf_en.pdf The market complaint process IIROC has confidential investigation procedures and as such, staff cannot comment on a potential investigation unless it becomes a matter of public record. By keeping information confidential, we protect the integrity of our investigation, ensure the complaint process is not used to affect the market and maintain fairness to those who may be the subject of a complaint that does not result in an investigation or sanction. As a result, we will not provide you with any updates or additional information regarding our review of this matter. However, please be assured that appropriate action will be taken.
One of IIROC’s primary objectives when reviewing any complaint is to determine whether there is sufficient evidence that supports a potential breach of the Universal Market Integrity Rules (UMIR) or other IIROC rules, warranting further investigation and potential regulatory action. If there are no indications of any rule violations, IIROC will close the file with no action taken. Where there are indications of potential rule violations, IIROC will take appropriate action against the dealer or its registered employees. Appropriate action may involve formal disciplinary proceedings or other measures, such as a cautionary letter. Formal disciplinary proceedings become matters of public record; however, other measures taken by IIROC are not. For further information on IIROC’s complaint process, please see our website
here.
Please note that IIROC does not have regulatory jurisdiction over the general public, public companies or their officers, directors or employees. They fall under the regulatory jurisdiction of the provincial securities commissions. When IIROC detects suspicious trading activity involving these individuals or entities, we refer the matter to the provincial securities commission that has jurisdiction.
IIROC’s role in market monitoring and analysis A significant part of IIROC’s role is to develop, administer and enforce the trading rules known as UMIR in the Canadian securities market. You may find out more about UMIR by visiting our website
here.
Under Recognition Orders issued by the Canadian Securities Administrators (CSA) and by agreement with the marketplaces, IIROC monitors all equity and debt market activity in Canada to ensure trading is carried out in accordance with UMIR and other IIROC rules. Here is a short
animation video that explains the life cycle of a trade. For a list of equity marketplaces IIROC regulates
, please see our website here. IIROC uses a state-of-the-art surveillance technology system known as SMARTS to monitor trading activity on Canadian debt and equity markets. SMARTS monitors up to one billion transactions daily in real-time and supports cross-asset surveillance and investigations. Using SMARTS, IIROC’s market surveillance team can more quickly detect trading anomalies across multiple products, individual traders and firms, and identify and respond to emerging trends in an efficient manner. For information about how IIROC monitors trading activity, see our website here:
Surveillance of Trading Activity or watch this short
animation video.
If you have any further concerns, please do not hesitate to contact us at any time.
Regards,
-----Message d'origine-----
De : Richard Robert <
rmrobert1@icloud.com>
Envoy : 2 septembre 2020 16:47
: Investor Inquiries <
InvestorInquiries@IIROC.CA>
Objet : Manipulation
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