Trump Media & Technology Group (DJT) recently sent a letter to Nasdaq’s CEO expressing concerns about potential market manipulation involving the “naked” short selling of DJT shares. The company provided detailed instructions to shareholders on how they can prevent their shares from being loaned out to short sellers who bet on the stock price falling.
In the letter to Nasdaq CEO Adena Friedman, Trump Media CEO Devin Nunes highlighted the fact that DJT appears on Nasdaq’s ‘Reg SHO threshold list,’ indicating possible unlawful trading activity. Nunes raised concerns about the sophisticated market participants profiting at the expense of retail investors through naked short selling.
While not directly accusing anyone, Nunes pointed out reports suggesting DJT is the most expensive U.S. stock to short as of April 3, 2024. He 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.
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.