IIROC on Short Sales; Manipulative and Deceptive ActiviesHighlighted a couple of sections ....cheers
IIROC's position is indeed that
entering an order, which has an expected 'failure to deliver' within the 2 day settlement window is indeed illegal, and falls within scope of "manipulative and deceptive activities"
It is obvious to any observers here on PHD, just by looking at the "stacked" asks, the aggressive sells into the bids, the wash trading of small lots (ie. 1000 share trades every 3 minutes as on 12/2/2022 for only $45 for each trade) that aggressive tactics are being used on PHD to suppress the share price.
While "some" posters here on the BB may say it is 'quasi-legal' currently, the articles I posted yesterday are indeed relevant to PHD - and all other CDN Junior Miners - as the regulatory framework is indeed once again in flux, and these practices are being scrutinized by the OSC/IIROC, as detailed in those posts I made yesterday - which information was both timely (being only a few weeks old) and material to PHD (as a junior miner)
To each their own - I believe PHD has Gold on the ground, and Gold in the ground, and I believe that "Manipulative and Deceptive Activities" are at work here on PHD suppressing the share price to prevent a PP which will allow PHD to drill for Gold.
The Net House Positions I posted yesterday for 2022 (and yes, contrary to a certain poster, that is indeed a Net House report), confirm that Anon during 2022 was the big seller of PHD to the tune of -2634000 shares ; confirming the statement made in the Open Letter from a week ago regarding Anon selling.
Cheers folks - enjoy your weekend
Guidance on Participant Obligations to have Reasonable Expectation to Settle any Trade Resulting from the Entry of a Short Sale Order
22-0130
Type: Rules Notice> Guidance Note
Distribute internally to: Executive Summary
This Guidance Note (Notice) provides guidance on the obligation of a Participant to have reasonable expectations, prior to the entry of a short sale order, that sufficient securities will be available to allow the Participant to settle any resulting trade on settlement date. This Notice confirms that the entry of a short sale order by a Participant without a reasonable expectation that they will have access to sufficient securities to settle any resulting trade on settlement date, which generally is two days following the trade date, is prohibited by UMIR 2.2 – Manipulative and Deceptive Activities.
- Definition of Short Sale
A short sale is generally defined to mean the sale of a security which the seller does not own either directly or through an agent or trustee. For additional clarity, among other things, a seller is not considered to own a security (and any sale of such securities would be considered a short sale) where:
- the security held by the seller is subject to any restrictions on sale imposed by applicable securities legislation or by an Exchange as a condition of the listing of the security, or
- the settlement date or issuance date pursuant to:
- an unconditional contract to purchase,
- a tender of a security for conversion or exchange,
- an exercise of an option, or
- an exercise of a right or warrant
would, in the ordinary course, be after the date for settlement of the sale.
- Manipulative and Deceptive Activities
Part 2 of Policy 2.2 enumerates a series of activities that may constitute a violation of UMIR 2.2(2) . One of these activities is entering an order for the sale of a security without, at the time of entering the order, having the reasonable expectation of settling any trade that would result from the execution of the order. This includes short sale orders.
IIROC expects that prior to the entry of a short sale order a Participant has reasonable certainty that it can access sufficient securities for it to settle any resulting trade on settlement date, which generally is two days following the trade date. If the Participant knows or ought reasonably to know that it is unlikely that sufficient securities will be available and accessible to deliver on settlement date, the order is not permitted to be entered. For example, a Participant may not be able to demonstrate a reasonable expectation that sufficient shares would be available on settlement date in cases where:
- the person on behalf of whom the short sale order is entered has previously executed trades where shares were not available to deliver on settlement date, or
- the securities being sold short are difficult to borrow.
For added clarity, where a client expects to receive securities after the settlement date of a short sale trade, the Participant is not permitted to rely on those securities to establish a “reasonable expectation” to settle because the securities would not be available to deliver on the settlement date of the short sale trade.