(Reuters) – The company that owns Donald Trump's private social media platform Truth Social said on Tuesday that it has requested Nasdaq's cooperation with any investigations into alleged market manipulation of its shares by so-called “naked” short sellers.
Devin Nunes, CEO of Trump Media and 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 issue electronic blue sheets for TMTG's trading data effective April 29. Through May 3 and some other dates from May and June.
Electronic Blue Sheet data contains trading and account holder information, which provides regulatory bodies with the ability to analyze a company's trading activity.
“Anomalies” around trading in TMTG stock “appear to be intensifying,” Nunes said, citing data from the Securities and Exchange Commission.
He requested data on financial companies such as Citadel Securities, Jane Street Capital and UBS.
The CEO asked Nasdaq to “fully cooperate with any and all congressional or other investigations into these companies — including by providing responsive data in Nasdaq's possession.”
Nunes had previously written to Friedman alerting the exchange to “potential market manipulation” in TMTG shares, and asking the exchange to help prevent the alleged manipulation.
“Bare” short selling, which is generally illegal in the United States, involves selling shares without first borrowing them or determining whether they can be borrowed, creating the risk that the seller may not be able to deliver the shares.
In late May, the company asked the commissioner of the Louisiana Bureau of Financial Institutions to open an investigation into alleged “illegal activities” in the trading of its shares.
TMTG has been on a rollercoaster ride since going public in March of this year. An army of Trump supporters and speculators bought up the company's shares, sending them up as much as 59% on their Nasdaq debut, but the stock has since reversed those gains.
(Reporting by Gopi Babu in Mexico City; Editing by Maju Samuel)