Regulatory Alerts2022-12-08
CSA Staff Notice 25-306: Activist Short Selling Update
The Canadian Securities Administrators issued this update to address stakeholder concerns regarding activist short selling following a 2020 consultation that received 23 comment letters. The CSA reaffirmed its commitment to enforcing existing securities laws against fraud and manipulation while monitoring international developments and IIROC's failed trades study. Although some stakeholders called for new disclosure or holding period requirements, the CSA concluded that current evidence does not yet warrant sweeping regulatory changes, though it continues to assess the impact of social media and potential future initiatives.
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