Via IIROC in March 2014:
“IIROC is concerned that firms engaged in the on-line retail trading business that provide limited market data may not be clearly describing the scope of the market data offered.
Clients that are unaware of the constraints of the market data provided may make uninformed and therefore sub-optimal order entry decisions.
IIROC believes it is important for firms to provide disclosure that describes the scope of market data provided to clients.”
Short Selling Runs Rampant
Short selling is believed (or so “they” say) to be a necessary part of the market, providing balance and efficiency.
While this may be true in some instances, especially with the advent of high frequency trading and ETF’s, the basic idea of short selling is completely absurd.
As I mentioned in a previous Letter:
“Short selling is simply selling stock you don’t have.
You borrow stock from someone (who likely doesn’t know you’re borrowing it), sell it, and hope that the stock goes down so you can buy it back at a cheaper price.”
To put that into context, it’s like saying:
You go away for vacation.
While you’re away, a stranger rents your house out on Airbnb without your knowledge.
You come home only to find your house is trashed – and now worth less than it was before.
You lose money on your house, but the stranger legally made money renting your house out.
It’s no secret that short selling can and often does hurt companies. While short selling can provide efficiencies in the market and create more liquidity, Canada’s market doesn’t stand a chance.
This is because of yet another Canadian regulatory hurdle.
This regulatory hurdle has caused short selling in Canada to run rampant – especially on Canada’s small cap exchange, the TSX Venture. The article continues in the window below...its worth the time to read and learn And it applies to the TSX as well as the Venture exchange.
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