Posted verbatim:
To: +Bill Evans (4436 )
From: +OLD JAKE JUSTUS
Sunday, Oct 17 1999 2:36AM ET
Reply # of 4445
O/T
Reposted from BOBz's:
Canadian Shorting....I posted a question about this in the public forum
misc.invest.canada - here is the response I got. Seems like this is indeed true!
Voyager
voyager@ragingbull.com
-----Original Message-----
From: STaylr14 staylr14@aol.com Newsgroups: misc.invest.canada
Date: Saturday, October 16, 1999 3:54 PM
Subject: Re: Ending of Naked Canadaian Shorting of OTC:BB stocks -
Detail on the reports of such, inside this message.
The memo and regulatory activity mentioned within it are believed to be genuine. There
has been an enormous amount of media coverage within Canada on the subject over the
last 4 months as US action has been made public. Actually this stuff is not new as the
SEC and British Columbia Securities Commission, in conjunction with the IDA and
Vancouver Stock Exchange as well as several US State regulators have been working
together for several years to combat illegal
Canadian brokerage activity in the United States. The investigations run from stock
maniupulation of US OTCBB stocks to Canadian brokers with US clients conducting
illegal US business by not being registered in the US. In fact, the SEC and BCSC have
even been engaged in
a LONG court case with one Vancouver brokerage firm over trading records of their
US clients. That case is still winding its way through the Canadian courts. Several
Vancouver brokerages have recently stated publically that they are ending or reducing
not only their US OTC BB activity but also withdrawing from taking US clients, which
many have done illegally.
They are finally taking steps to comply with US law, which in many cases is long
overdue, IMO. As the SEC and Canadian authorities step up their investigations, I think
you will see much more of this kind of action.
Whether this ends so called "naked shorting" remains to be seen. Frankly, the incidents
of actual naked shorting is much, much less than people think it is. Most of the cases
referred to in the memos and press deal with instead illegal insider selling. Insiders and
promoters in "pump and dump" schemes take big blocks up stock up north and use
Canadian brokers to dump it into the market.
Naturally, this kind of massive selling depresses the market, which the insiders and
promoters (the very people selling) are blaming on "naked shorters". -ST Publisher of a
free twice weekly online Canadian Stock Market newsletter at:
taylorstock.com |
