Trump Media and Tech Group (NO Politics Allowed) (DJT)

[Funaboard]

As you know, Securities and Exchange Commission ("SEC”) Regulation SHO ("Reg SHO”) guidance clearly states that the only way to establish "reasonable grounds” for short sales of threshold securities like DJT is if the broker-dealer pre-borrows the securities; moreover, "a broker-dealer may not re-apply a locate for intra-day buy to cover trades.”1 SEC guidance also provides that "bona-fide market-making does not include activity that is related to speculative selling strategies for investment purposes of the broker-dealer and is disproportionate to the usual market making patterns or practices of the broker-dealer in that security.”2 Despite this clear guidance, TMTG’s stock has appeared continuously since April 2, 2024, on the Nasdaq Reg SHO Threshold List, which results from persistent failures to deliver ("FTDs”) and can indicate the illegal "naked” short selling of a security.