(Reuters) – The company that owns Donald Trump’s social media platform Truth Social said on Tuesday it has asked the Nasdaq to cooperate with any investigations into the alleged market manipulation of its shares by so-called “naked” short sellers.
Devin Nunes, CEO of Trump Media & Technology Group (TMTG), said in a letter to Nasdaq CEO Adena Friedman that he has asked Congress to urge the Financial Industry Regulatory Authority (FINRA) to begin April 29 to issue electronic blue sheets for TMTG’s trading data. through May 3 and some other dates in May and June.
Electronic blue sheet data contains both trading and account holder information, allowing regulators to analyze a company’s trading activities.
Nunes said the “anomalies” surrounding trading in TMTG stock “appear to be becoming even more severe,” citing SEC data.
He requested data on financial companies such as Citadel Securities, Jane Street Capital and UBS.
The CEO asked Nasdaq to “cooperate fully with any congressional or other investigations into these companies, including by promptly providing responsive data in Nasdaq’s possession.”
Nunes had previously written to Friedman to warn the exchange of “potential market manipulation” in TMTG’s stock, and to ask the exchange to help prevent alleged manipulation.
“Naked” short selling, which is generally illegal in the United States, involves selling shares without first borrowing them or establishing that they can be borrowed, creating the risk that the seller will be unable to deliver the shares.
The company in late May asked the commissioner of the Louisiana Office of Financial Institutions to investigate alleged “illegal activity” in trading its shares.
TMTG has been on a rollercoaster since its IPO in March this year. An army of Trump supporters and speculators snapped up its shares, sending them up as much as 59% in their Nasdaq debut, but the stock has since reversed those gains.
(Reporting by Juby Babu in Mexico City; Editing by Maju Samuel)
