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Van Sun/CP say TSX-V may get its uptick rule back

2016-05-20 06:54 ET - In the News

The Vancouver Sun reports in its Friday edition that after a long slide, the TSX Venture Exchange -- down more than 70 per cent from its March, 2011, highs -- has rebounded nearly 30 per cent this year. A Canadian Press dispatch to The Sun says, however, that the volume of shares traded on the market has also been steadily slipping. As part of what the TSX-V calls its "revitalization" plan, the exchange is asking the Investment Industry Regulatory Organization of Canada to bring back the uptick rule, which restricts the price at which a stock can be sold short. IIROC did away with the policy back in 2012. "Early stage companies are typically not as liquid as larger-cap companies, and shorting can be quite disruptive to the valuation," says TSX-V president John McCoach. "So if a company is trading at 50 cents and someone is aggressively shorting that stock, they can have a much bigger impact than if someone is aggressively shorting a $50 stock." Advocating for changes to short-selling rules was not initially part of the plan, but it has since been added to the list of priorities, after members of the junior market community expressed concerns that predatory short-selling is hurting them.

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