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Wait, naked short selling is unrelated to insider trading. Insider trading is illegally profiting on information that was given to you in trust, while naked sh

Wait, naked short selling is unrelated to insider trading. Insider trading is illegally profiting on information that was given to you in trust, while naked short selling is short selling without a documented ability to deliver the stock. As far as I can gather from english language articles, the regulator has banned short selling in response to an article alleging fraud at wirecard. Bloomberg describes this as "unprecedented". https://www.bloomberg.com/news/articles/2019-02-18/bafin-bans-new-wirecard-net-short-positions-and-increases https://www.bloomberg.com/news/articles/2019-02-18/bafin-ban...

olivermarks 7y ago
today's FT front page headline 'Wirecard relied on three opaque partners for almost all its profit' 'Dubai-based unit of German payments group was not audited' 'Al Alam Solutions, a Dubai-based payments processor with skeletal operations in the Emirate, is the largest of the three “partner” entities. Wirecard refers clients to Al Alam in return for a share of any processing fees as commission. A former Al Alam employee said the business had six or seven staff in total and “the boss” was Oliver Bellenhaus, a Wirecard executive. The other partners are PayEasy Solutions, a Philippine payments group that shares an office with a Manila bus company, and Singapore-based Senjo. ' https://www.ft.com/content/a7b43142-6675-11e9-9adc-98bf1d35a056 https://www.ft.com/content/a7b43142-6675-11e9-9adc-98bf1d35a...
Traster 7y ago
Whilst naked short selling can be an offence, in this case the insider trading is the of the short selling before the news came out. The fact its naked happens to be irrelevant to the insider trading case.
wolfi1 7y ago
there was more short selling activity in advance of the articles which is now the reason for the investigations (and for the ban of short selling)
rmetzler 7y ago
I think the German definition of insider trading is more loose and could potentially include someone profiting from spreading fake news.

olivermarks 7y ago

today's FT front page headline 'Wirecard relied on three opaque partners for almost all its profit' 'Dubai-based unit of German payments group was not audited' 'Al Alam Solutions, a Dubai-based payments processor with skeletal operations in the Emirate, is the largest of the three “partner” entities. Wirecard refers clients to Al Alam in return for a share of any processing fees as commission. A former Al Alam employee said the business had six or seven staff in total and “the boss” was Oliver Bellenhaus, a Wirecard executive. The other partners are PayEasy Solutions, a Philippine payments group that shares an office with a Manila bus company, and Singapore-based Senjo. ' https://www.ft.com/content/a7b43142-6675-11e9-9adc-98bf1d35a056 https://www.ft.com/content/a7b43142-6675-11e9-9adc-98bf1d35a...

Traster 7y ago

Whilst naked short selling can be an offence, in this case the insider trading is the of the short selling before the news came out. The fact its naked happens to be irrelevant to the insider trading case.

wolfi1 7y ago

there was more short selling activity in advance of the articles which is now the reason for the investigations (and for the ban of short selling)

rmetzler 7y ago

I think the German definition of insider trading is more loose and could potentially include someone profiting from spreading fake news.