Canada needs to toughen short selling rules to weed out abuse, market watchers say - News Summed Up

Canada needs to toughen short selling rules to weed out abuse, market watchers say


Canada needs to crack down on a certain type of short selling because a growing number of bad apples are abusing the system for everyone, market watchers say. Short selling becomes abusive, and problematic for the market, when a small minority of investors bend the truth to make money through panic. "But abusive short selling is ... market participants who ... use either exaggerations or misrepresentations to drive their narrative." (Michael Nagle/Bloomberg)"I would like to see early warning disclosure requirements for short sellers," Soliman said. Boardroom 'chaos'The CBC reached out to the Ontario Securities Commission to ask whether the regulator is contemplating changes to their short selling rules.


Source: CBC News February 11, 2019 09:00 UTC



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