‘Burglar’ short-sellers under fire over Darktrace attack
Today is the start of a brand new week, Monday 21 August 2023, and it's currently 7:24 am in the morning.
Matt Moulding, the CEO of THG, expressed his strong criticism over the weekend towards regulators and the London Stock Exchange. He accused them of ignoring hedge funds and short sellers who engage in unethical practices. Moulding specifically targeted Quintessential, a renowned American company, for its damaging assault on Darktrace in the previous year.
Quintessential commenced a brief in a British technology company last year prior to releasing a comprehensive study making claims about numerous abnormalities detected in its financial statements, such as its rates of expansion.
Stocks plummeted prior to the release of an EY report, which was ordered by Darktrace, validating the robustness of the cyber security company.
Quintessential strikes back, as Gabriel Grego - the leading executive of the company - comes forth to support short sellers, highlighting their significance in maintaining "market efficiency and uncovering fair prices."
The issue of short-selling continues to spark debates in the financial district. Moulding and other experts have previously proposed that the simplicity with which hedge funds can engage in shorting in the United Kingdom has played a part in the poor performance of London's stock markets in recent times.
Moulding informed City A.M. that individuals supporting short-selling - who claim that it enhances market effectiveness - resemble "thieves pilfering residences and subsequently asserting that they are aiding in tidying up."
"Due to its inexpensive nature," Moulding expressed in his LinkedIn post, "one can accumulate enormous wealth by causing significant chaos to a company and negatively impacting its stock value."
The entrepreneur from Manchester expressed that regulators' inaction adds to the perception that London is a stagnant place. They urged the FCA, the financial watchdog of the City, to take strict measures against short selling.
He also expressed the urgency for MPs to be motivated to take action.
The FCA chose not to provide any comment.
