RE:RE:Naked short sellingHarley103,
The employees of that AI trading programs employing and "related party" market maker were recently hired by NGC officers and directors.
Said kind of full servicing market maker employees are relying on the very short exempt status at issue, as are the multitudes of market makers who sell short, any which way they can, a given company's equities in an overall effort to create liquidity both to the downside share price actions and also to any perhaps upward share price action.
You asked "How is this allowed in Canada" and stated "let's hope the upcoming lawsuit is successful."
I wouldn't hold my breath waiting for the merelyproposed class action lawsuit to be successful Harley103.
The regulators have the right to regulate in the manner they have seen fit and any suggested as failing industry players self-regulation which is said to exist, is in fact a form of immensely lax "regulation" chosen as the proper amount or degree of "regulation" by and on behalf of the regulators.
The politicians are always in a position of conflicting interests with respect to this issue; and they are not going to bite the hand that employs this intentionally embeded systemic mechanism which facilitates in their feeding by way of political party donations. This short exempt status and the failure to deliver allowance which exists is all part in parcel of what is known as the never ending supply of gravy, so to speak.
Anytime they see the opporunity to naked short any would be targeted TSXV equities issuer, a market maker representative and it's employed AI trading program are deployed.
It also doesn't help when you have a crew of company management who simply don't want to get anything right in a necessarily transparent manner.
After all, "related party" type full servicing short selling market makers tend to feast on the share price of companies operated by such nontransparent and seemingly intentionally failing management types, a.k.a. "The Missionaries On Assignment"