Save Canadian Mining group scores major victory against short sellers

Save Canadian Mining (SCM) has struck a blow to predatory short-sellers. "As a step in the right direction, we are pleased to share that the IIROC put out a recent guidance notice," said SCM spokesman Terry Lynch. "The notice confirms that the entry of a short sale order by a participant without a reasonable expectation that they will have access to sufficient securities to settle any resulting trade on the settlement date, which generally is two days following the trade date, is prohibited by UMIR 2.2 – Manipulative and Deceptive Activities."
 

• Part 2 of Policy 2.2 enumerates a series of activities that may constitute a violation of UMIR 2.2(2) 1. One of these activities is entering an order for the sale of a security without, at the time of entering the order, having the reasonable expectation of settling any trade that would result from the execution of the order. This includes short-sale orders.

Predatory short selling continues to impact mining companies. It hinders their ability to effectively raise money in our capital markets, hire and attract the next generation of mining professionals and employ local indigenous groups with meaningful. well-paid local jobs. This clarification is a great opportunity to start to correct a major problem in our markets and introduces more protections for mining companies to curb predatory short selling largely perpetrated by anonymous offshore entities and facilitated by onshore investment banks.

This is only the beginning. Save Canadian Mining is committed to continuing to research and educate the public and governments about the structural problems within Canada’s capital markets. We encourage you to join the movement and prove to the government and regulators that we are a determined force that wants to save our industry and preserve it for future generations.

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