Learn more about what the ASC is doing to support market participants and investors.
Dec 03, 2020
Toronto – The Canadian Securities Administrators (CSA) today published a consultation paper to facilitate discussion about activist short selling.
Activist short selling involves an individual or entity that takes a short position in a security and then publicly shares information that is expected to negatively impact a company’s stock price. If the value of the security declines, the short seller realizes a profit.
“In recent years, activist short selling campaigns have received considerably more attention, and stakeholders have raised concerns about the overall impact of this activity on our markets,” said Louis Morisset, CSA Chair and President and CEO of the Autorité des marchés financiers. To further inform our analysis, we are seeking comment on issues identified through our research.”
The consultation paper summarizes stakeholder concerns about activist short selling, outlines the Canadian and international regulatory frameworks for this activity and sets out CSA Staff’s findings regarding the nature and extent of activist short selling in Canada.
The CSA’s research and analysis began in 2019 and consisted of an empirical analysis of activist short seller campaigns targeting Canadian issuers based on available data as well as an academic literature review.
Key findings include:
The CSA requests feedback on the consultation paper, which includes a list of consultation questions. Comments should be submitted in writing by March 3, 2021.
CSA Consultation Paper 25-403 Activist Short Selling can be found on CSA members’ websites.
The CSA, the council of the securities regulators of Canada’s provinces and territories, co-ordinates and harmonizes regulation for the Canadian capital markets.
For Investor inquiries, please refer to your respective securities regulator. You can contact them here.
For media inquiries, please refer to the list of provincial and territorial representatives below or contact us at firstname.lastname@example.org.
For more information:
Kristen Rose Ontario Securities Commission 416-593-2336
Sylvain Théberge Autorité des marchés financiers 514-940-2176
Brian Kladko British Columbia Securities Commission 604-899-6713
Marissa Sollows Financial and Consumer Services Commission, New Brunswick 506-643-7853
Renée Dyer Office of the Superintendent of Securities Newfoundland and Labrador 709-729-4909
Jeff Mason Nunavut Securities Office 867-975-6591
Shannon McMillan Financial and Consumer Affairs Authority of Saskatchewan 306-798-4160
Theresa Schroder Senior Advisor, Communications 403.297.4231
Jason Booth The Manitoba Securities Commission 204-945-1660
Steven Dowling Government of Prince Edward Island Superintendent of Securities 902-368-4550
David Harrison Nova Scotia Securities Commission 902-424-8586
Rhonda Horte Office of the Yukon Superintendent of Securities 867-667-5466
Matthew Yap Office of the Superintendent of Securities, Northwest Territories 867-767-9260