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Naked Short Sellers Beware! Brokers Now Responsible For Clients’ Illegal Actions

Hello Everyone,

It’s been a while since our last post, but we’ve never forgotten the cause or stopped working on solutions to the crime of predatory naked short-selling. In this post, we want to share some encouraging news that could mark a turning point in the fight against this harmful practice.

Power Nickel’s Innovative Efforts
Before we dive into the exciting development, we’d like to mention our ongoing journey at Power Nickel and our flagship Nisk Nickel PGM deposit in Quebec. Like many junior mining companies, we’ve faced significant challenges due to predatory short sellers. We’ll share more about Power Nickel’s innovative efforts to combat naked shorts in a future article.

A Ray of Hope
In today’s challenging capital markets, hope can be scarcer than capital itself. However, we’ve come across a significant development that should give us all a reason to be hopeful. The USA brokers are now being held responsible for the actions of their clients. If clients engage in illegal naked short selling or spoofing and cause damage to the companies being targeted, brokers can be held liable.

You can read the full article here. This ruling has the potential to send shockwaves through brokers in the USA who have been linked to illegal naked short-selling schemes. It should also serve as a wake-up call to Canadian regulators who have allowed similar activities to persist.

The Road Ahead
We believe that litigation against brokers by affected companies will increase, and US brokers may become increasingly cautious about exposing themselves to such risks. While it’s still early days, and the naked short-selling industry is well-funded and influential, this ruling is a significant step in the right direction.

Judgment day just got a lot closer for those complicit in naked short-selling. The big question now is, what will Canada do?

Time for Canadian Regulators to Act
It’s high time for IIROC and the Securities Commission to wake up and do their job. An article by NIALL MCGEE highlights the challenges faced by the Canadian mining sector (Read Here). We are in a top-quartile commodity price market, and the world needs Canadian minerals. The capital markets need fixing, and we can no longer accept excuses from regulators who claim not to see anything wrong.

If regulators continue to refuse to act, then it’s time for a change. Perhaps the entire self-regulatory system should be reconsidered. It’s time for governments, both provincially and federally, to demand changes from our regulators or impose a new regulatory regime. The Canadian capital markets are broken and are failing to serve the needs of the majority of Canadians.

In closing, let’s take this recent positive ruling in the USA as a sign of hope. We are moving one step closer to eradicating the damages caused by predatory naked short-selling and ushering in the greatest commodities-driven boom in history.

Stay tuned for more updates on this important issue. Together, we can make a difference and ensure fair and transparent financial markets for all.


Terry Lynch
Founder, Save Canadian Mining