IR Leader
March 02, 2021

CIRI Comments on CSA Consultation Paper 25-403 - Activist Short Selling

CIRI submitted comments to the CSA on their Consultation Paper on activist short selling. In the submission, CIRI recommends the CSA introduce a regulatory regime:
  • that requires the activist short seller to provide their report to the issuer in advance of publishing, to ensure factual accuracy;
  • that requires all short sellers disclose their opening, changes in and closing positions as well as their identity and that such disclosure be made daily;
  • that bans the practice that allows shares to be sold short without first borrowing the security, in line with the Capital Markets Modernization Taskforce recommendations;
  • that implements a 10-day minimum holding period that would apply to any short seller who opens a short position and disseminates market-moving information; and
  • that includes recourse for activist short sellers that disclose inaccurate or misleading information.
CIRI also recommends that the CSA review the impact that the removal of the tick test has had on the market since 2012.

CIRI is also encouraging issuers to support this cause by submitting the attached letter of support. Every voice counts, especially when investor submissions tend to outweigh issuer submissions.

To read the full submission, click here.
To access the letter of support, click here.