Devin Nunes, CEO of Trump Media & Technology Group (DJT), recently sent a letter to Nasdaq’s CEO expressing concerns about potential market manipulation through the “naked” short selling of the company’s stock. In the letter, Nunes outlined detailed instructions for shareholders on how to prevent their DJT shares from being loaned out to short sellers, who bet on the stock price dropping.
Nunes highlighted the unfair practice of “naked” short selling, which can disadvantage retail investors while benefiting sophisticated market participants. Although not explicitly accusing anyone, Nunes mentioned that reports show DJT as the most expensive U.S. stock to short as of April 3, 2024. He raised concerns about brokers having a financial incentive to lend out shares that they do not actually possess, potentially leading to market manipulation.
Nunes also identified four market participants responsible for a significant portion of DJT trading volume, including Citadel Securities, VIRTU Americas, G1 Execution Services, and Jane Street Capital. He urged Nasdaq to take steps to promote transparency and compliance, such as requiring brokers to disclose their “Net Short” positions and preventing the lending of non-existent shares.
Trump Media & Technology Group expressed a willingness to assist Nasdaq in safeguarding the interests of retail investors and ensuring market integrity. The group has been vocal in advocating for greater transparency and accountability in financial markets and has called on other companies to follow suit.