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Dear FCA, about your table of most shorted shares and New World Oil and Gas

By Nigel Somerville

13 May 2015 09:16

More:

I have taken a look at the FCA spreadsheet on the most shorted shares, having read Steve Moore’s table of most shorted AIM shares and one company name seems to be conspicuous by its absence: New World Oil and Gas (NEW).

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Comments

Bruce

13 May 2015, 10:02

Dear Mr Somethingville

Thank you for your recent message regarding your concerns about the possibility of Market Abuse. Consigned to dev/null. We take such concerns extremely seriously and will instigate a full investigation into the matters you have raised. Oh, apparently I should not have seen that. Please delete everything if you were not the intended recipient and then delete yourself, give my love to my wife.. oh bugger….. lost carrier.
Czech Mate (aka Janos)

13 May 2015, 10:47

I imagine the reason would be that the shares have not been borrowed and then sold (the conventional definition of short-selling).
DUCK AND DIVE

13 May 2015, 11:55

Could this be exempt from notification under the ESMA rule below?

“VII.IV. Anticipatory hedging under Article 2(1)(k)(iii))
56. A entity dealing as principal in anticipation of client orders or requests expected to materialise in the near term can benefit from the market making exemption to the extent that the anticipated hedging is necessary for the performance of actual market making activities and is not carried out on other grounds, such as speculative. Should the anticipated client’s order or request to quote not be received, the position accumulated through anticipated hedging should be unwound in an expe-ditious and orderly manner (and in any event as soon as practicable).”

http://www.esma.europa.eu/system/files/2013-158.pdf (page 21)
nigel somerville

13 May 2015, 12:24

Duck – “unwound in….an orderly manner”. LOL!
Janos – ah, so an excuse: naked shorting is not, er, shorting. Ah well, that’s all right then and we can all go back to trading in NEW shares safe in the knowledge that settlement will occur in a timely manner.

Bruce – yup, am totally reassured!