Trump Media presses US regulator to investigate short positions in its stocks

By Carolina Mandl

NEW YORK (Reuters) - The media institution bulk owned by President Donald Trump, Trump Media & Technology Group, said connected Thursday it had asked the U.S. Securities and Exchange Commission (SEC) to analyse a caller abbreviated presumption successful its stocks.

Hedge money Qube Research & Technologies disclosed a astir $105 cardinal abbreviated presumption successful Trump Media connected Monday, according to a filing with Germany's national Gazette Bundesanzeiger.

Trump Media, which is 53% owned by Trump and is the genitor institution of the Truth Social platform, said successful a memo sent to the SEC connected Thursday it was acrophobic Qube's abbreviated positions could impact "suspicious activity."

Short selling is simply a arguable signifier that often comes nether scrutiny during times of marketplace turmoil. Executives typically knock specified trading, which is legal, portion immoderate activists constituent retired they person uncovered firm misconduct.

"We impulse you to instantly analyse this suspicious trading and study your findings backmost to TMTG and immoderate applicable civilian and transgression authorities," the memo said.

Trump Media besides said determination could beryllium "indications of amerciable bare abbreviated selling of DJT shares," a signifier banned successful the U.S.

A spokesperson for the SEC declined to comment. Trump Media and Qube did not instantly respond to requests for remark connected the memo.

When asked astir its abbreviated presumption successful Trump Media earlier successful the week, Qube told Reuters its positions are driven by a quantitative exemplary and "do not bespeak a circumstantial presumption connected the fundamentals of the company."

The White House responded to a question astir imaginable conflicts of involvement by noting the president's assets are successful a spot managed by his children.

"There are nary conflicts of interest," White House spokesperson Anna Kelly said successful an emailed statement.

Investors who instrumentality a abbreviated presumption successful a company's banal are betting that the stock terms volition decline. In a abbreviated sale, investors get shares and past merchantability them, betting that the stock terms volition autumn truthful that they tin beryllium bought backmost astatine a little terms to repay the loan, allowing the capitalist to pouch the difference.

Naked short-selling of stocks refers to a signifier successful which an capitalist abbreviated sells shares without archetypal borrowing them oregon determining they tin beryllium borrowed.

It is not the archetypal clip Trump's media and exertion institution filed akin complaints. In April past year, it disclosed successful a filing with the SEC that it had alerted the Nasdaq of "potential marketplace manipulation" successful its shares.

(Reporting by Carolina Mandl, further reporting by Chris Prentice, successful New York; editing by Pete Schroeder successful Washington; Editing by Marguerita Choy)