Trump Media & Technology Group (DJT) recently expressed concerns to Nasdaq CEO Adena Friedman about potential market manipulation involving the “naked” short selling of DJT shares. In a letter, Devin Nunes, CEO of Trump Media, highlighted that DJT appears on Nasdaq’s ‘Reg SHO threshold list,’ indicating possible unlawful trading activity.
Nunes raised concerns about sophisticated market participants profiting at the expense of retail investors through naked short selling. He pointed out that DJT is currently the most expensive U.S. stock to short as of April 3, 2024, and identified four market participants responsible for a significant portion of DJT’s trading volume: Citadel Securities, VIRTU Americas, G1 Execution Services, and Jane Street Capital.
While not directly accusing anyone, Nunes urged Nasdaq to take steps to ensure transparency and compliance by enforcing Reg SHO, requiring brokers to disclose their “Net Short” positions, and preventing the lending of nonexistent shares. Trump Media & Technology Group expressed readiness to support Nasdaq’s efforts in addressing these concerns.
