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I'm going to update my contact reference to the FCA tomorrow asking them to look at any suspicious activity again.
You have to ask what would be the point of shorting a company in good nick, unless you are able to manufacture a downward share price.
Every single visible trade currently in the hundreds, buys and sells , more buys than sells overall, and like you say being actively played. It's easy for them.
Look at the short interest. It's risen again. They're very actively shorting this now.
Looks like they're trying to take this down, don't get it the trading update seemed OK to me or am I missing something from it?
To think this was 379 last Wednesday.
This shares is still struggling to move upward, tempted to add some more but some thing says wait
Hopefully but not holding my breath.
Just going to report every time a hedge fund increases and the share price nosedives for no reason.
Not holding my breath canetoad.
Well done JG.
One thing to note is that FCA doesn't seem to care about spoofing or market abuse via fake orders. I get the impression that they've given up and/or don't have the skills to investigate it.
I've filed a similar report to them, but I'm not holding my breath for any action. This is why a lot of international investors refer to the UK markets as 'Londonistan'.
In the response from the FCA where they said "yiu can see here" this is the link to their direct market abuse section.
https://www.fca.org.uk/markets/market-abuse
JG, Great work to have at least got a response! Let's hope its not in vain and they can go some way to clean up what appears to be market abuse.
How did you manage to get a reply from the FCA so quickly,I have had an on going Peer to Peer complaint which has been deferred 5 times ,that's nearly 3 years now.Be interested If any thing comes of it but doubt it as they are a law to then self's
Reply from the FCA
Thank you for your recent email that's been passed to me as best placed to respond to you.
I understand you're reporting concerns about stock market price manipulation via shorting of a firm you've invested in directly. You've take the right steps in referring your concerns to the LSE and the firm's investor relations team and you should remain in contact with them directly for their responses.
I can appreciate the concerns this has caused you and thank you for bringing this matter to our attention.
What I have done with your information
Preventing, detecting and punishing market abuse is a high priority for us, as it’s important in fulfilling our statutory objectives of protecting consumers, enhancing market integrity and promoting competition. As such, I have shared the information you provided with our market abuse team and you can read more about our work in this area, including how to make additional direct reports with any further concerns you may have here. We appreciate members of the public raising their concerns with us, because this can be a valuable source of intelligence.
Please be aware that I won’t be able to provide you with any feedback on how we have followed up the information you have given us. I appreciate this can be frustrating, this is because much of our work is covered by legal and policy restrictions and you can read more about information we can share here. We may, however, contact you if we need further information.
Thank you once again for taking the time to bring this matter to our attention. If you need to speak to us further on this matter, have any other questions for the FCA, or have more information to share with us then please don’t hesitate to contact us again and please quote the following number, to ensure we can link all your correspondence to the correct reference number. Your reference number is [207851574].
I trust this information is helpful and wish you the best going forward.
To help us improve our service, I’m interested in finding out about your experience with the Supervision Hub today. I’ll send you a link to a survey and I’d appreciate it if you could take a few moments to share your feedback on the service you’ve received from me.
Yours sincerely
I received the same response from NETW. It's very hard to believe. It's not normal that a share has this high a level of short sellers. There's something very coordinated going on here. Also, I don't believe that NETW are as clueless about the situation as they say. Why would hedge funds have such large- and increasing positions? I originally though that these would reduce after the DPO completion, but was wrong. It looks like coordinated manipulation of the share price. A bit like a football game, kicking the ball around.
Yeah 353 open 323 close.
Hope their houses burn down.
I have paypoint and the fall was hardly anything ,2% in 4 days so I dont take that excuse.Has to be the large shorters taking it down.Its going to be a sit it out then get out unless they close posistions
Shorters doing it
So much for the payment sector sell off excuse, both visa and AMEX positive today
Here we go again.
I actually did twice, 320 and 315, at least there's an explanation now.
Might even break even today,we should of all bought more when it dropped to 314 lol,If only we had a crystal ball
Thanks Canetoad
Will have a look at that.
I now get the drop, think it was a global payments sell off which I can live with, but not short sellers, can't live with them.
@jg68: "For example, I believe that they are setting extremely large sell orders on their systems which the markets would then pick up on as sells in order to drive the price very low, but then cancelling these sell orders at the last minute just before execution."
Unfortunately most of the exchanges *facilitate* this by having a special API call in the Direct Market Access layer. It's something they did to make HFT firms become more profitable - basically the exchange *helps* them rip-off private investors!
There have been several attempts to change this, but there are very wealthy firms with a lot of influence that always squash any attempt to change it.
You might find it interesting to listen to what Haim Bodek says. He explains how it works:
https://www.youtube.com/watch?v=kFQJNeQDDHA
Received a reply from IR advising of the following:
We would like to point out that the payments sector globally saw a very wide sell off yesterday afternoon at the time you mention, and that our share price was one of the least impacted given the good trading update we published earlier in the day.
We believe the payments sector was more widely impacted yesterday and continues to be impacted today due to a combination of:
• Sector results from others in the global payments space
• Pax, a manufacturer of POS devices has allegedly seen a data breach. This has no impact on Network International.
We do not take part in any trading, as the trading occurs on the exchanges. Should you have any concerns around trading, then we would recommend you contact the relevant exchanges.
To whom it may concern
I am a small time private investor in a UK listed company called Network International and after doing my research on the company decided it was a good investment to place some of my savings.
I have watched this share price behave in all manner of strange behaviours over the months and now as a result of what seems like downright manipulation yesterday and today, I feel that this needs investigating.
I have written to the London stock exchange and investor relations at Network International but yet to receive a response.
Yesterday 27th October the company reported its trading update through an RNS and the markets did not react positively nor negatively throughout the day. The stock traded either side of 370 all day until 4pm.
Then between 4pm and 4.35 just after close the stock plummeted to 351 on no world news events, no company specific events, and very low sell volumes which during that last 30 minutes were mostly in the hundreds, nothing close to warrant that sort of drop.
Then today this morning, during the first hour of trading the share price plummeted a further 10% and reached 314 at approximately 9.35 this morning, again on very little stock sold, more stock bought, and absolutely no news to warrant this blatant manipulation.
This particular stock is subject to being short sold by various companies, and the 4 main hedge funds that are disclosed as having borrowed more than 4.5% of the stock, which they do in order to make profits when the price goes down, are as follows.
Gladstone capital management
Kuvari partners
Adelphi capital
Blackrock investment management UK limited.
Unfortunately this short selling activity is legal but they are required to stay within the rules, and my feeling is that they are carrying out conduct which is not allowed in order to drive the price down so they can then purchase back the shares they have borrowed as a short at a cheaper price than they borrowed them for, and then make a large profit on the difference.
For example, I believe that they are setting extremely large sell orders on their systems which the markets would then pick up on as sells in order to drive the price very low, but then cancelling these sell orders at the last minute just before execution.
This means that small-time honest investors like myself have no chance and are often left with large losses because of this type of activity.
There is no other logical explanation that could explain such large price swings on very little sell volumes in such a short space of time.
Please can you investigate this particular time period for us.
Many thanks