The collaboration will help to tip the scales in favor of retail traders over naked short sellers
By Fernanda De La Torre
This week Upstream, a MERJ Exchange market, announced its partnership with Shareholder Intelligence Services, LLC (“ShareIntel”) to help issuers combat naked short selling by dual listing their public shares on Upstream’s regulated securities exchange!
ShareIntel is the leader in investigation and due diligence services for illegal short selling. ShareIntel now counts Upstream as one of the tools they can offer to issuers in their quest for a fair-priced securities market and to give the issuer, and shareholders, the ability to fight-back against unfair market activities.
ShareIntel helps U.S issuers gather and analyze shareholder trading data through its DRIL-DownTM process, a technology platform that tracks bank, broker dealer and shareholder movement specifically to reveal suspicious, aberrant, and/or unusual trading activity. The tool aims to help identify, interpret, and communicate shareholder and broker-dealer movement to issuers. Having Upstream alongside DRIL-DownTM means shareholders can now react to manipulation, leveling the playing field.
“ShareIntel is excited to have a partner that shares in the vision of creating fair markets where investors can transact without having to be concerned with illegal short selling. Upstream can offer our clients the marketplace to list and give investors another venue to trade,” stated David Wenger, President, and Chief Executive Officer of ShareIntel.
How we combat market manipulations
Upstream is a retail trading platform enabling inter-exchange arbitrage trading opportunities for investors. Traders can buy shares on the U.S. market, and seamlessly deposit them on Upstream for secondary sale to international buyers. On Upstream there are no middlemen and there is no short selling. An issuers’ shares can now leave the U.S. ‘market makers closed loop’ and, if sold short , will eventually have to be bought-in to cover. Although we cannot prevent short selling on other markets entirely, we believe a dual listing on Upstream will make short selling more difficult and help issuers combat predatory behavior.
As an investor-driven market, Upstream has no market makers and features a transparent order book where everyone sees level-2 bids and offers. Upstream does not allow predatory manipulative activities including short selling, stock lending, wash trades, layering or spoofing that may negatively impact other capital markets. Upstream traders experience real-time trades 20 hours a day, 5 days a week, peer-to-peer, instant settlement, with no market makers, and no payment for order flow.
“Illegal short selling crushes companies, and for the benefit of just a few secretive ‘players.’ Issuers, and shareholders, deserve a fair price for shares. Here at Upstream we have removed unnecessary middlemen and we prevent all short selling. And so, to partner with ShareIntel in offering their clients a fair marketplace is very exciting indeed,” commented Brian Collins, Co-founder of Upstream.
Dual Listing on Upstream
The benefits of listing on Upstream include:
- Access a global audience who can invest with digital currency. Upstream offers investors a streamlined USDC stablecoin off-ramp back to popular cryptocurrency exchange platforms and features a public orderbook with transparency, no short selling, and no wash trading; enforced by Ethereum smart contract technology.
- Streamlined reporting. Issuers may utilize SEC or OTCQX filings to satisfy Upstream reporting requirements.
- Seamless transfer agent integrations. Upstream has U.S. transfer agent deposit and legend lift methodology in place to address common OTC/microcap share deposit and custody problems that can lead to illiquid holdings.
- International USD accounts. All Upstream user accounts, U.S. and non-U.S., are FDIC-insured up to $250,000. Issuers’ U.S. shareholders also enjoy a US dollar fiat ACH off-ramp back to any U.S. bank when they sell shares. International investors’ US dollar off-ramp is via bank wire.
- Low fee structure. As a MERJ Exchange market, Upstream features all the perks of a regulated national securities exchange, but with competitive listing fees and next-generation blockchain trading features including instant settlement.
- Digital solutions on a next-gen trading app. Streamlined shareholder management using Upstream’s in-app cap. table solutions with compliant onboarding integrations, and streamlined share deposits from U.S. transfer agents, along with automated market making, in-app voting, in-app advertising, and other investor disclosure and communication tools.
- Web3 integrations. Upstream offers a streamlined bridge into Web3 to expand your digital-first community. Upstream also supports NFT minting and trading to promote fan engagement and offer digital collectibles and promotions to users which may be redeemed for products, services or experiences for added value.
- A MERJ Exchange Market. Upstream is a MERJ Exchange Market. MERJ is an affiliate of the World Federation of Exchanges. As a fully regulated overseas stock exchange, not a mini-market like an ATS or MTF, qualified issuers may cross-list Upstream securities in other global markets.
Upstream is actively accepting dual-listing applications from NASDAQ, NYSE, OTC Markets & international issuers that are seeking to offer their shares to a modern-day investor pool that accepts USDC cryptocurrency and traditional payments. Learn more at: https://upstream.exchange/GetListed or reach the team at email@example.com.
Read the full press release here.
This communication shall not constitute an offer to sell securities or the solicitation of an offer to buy securities in any jurisdiction where such offer or solicitation is not permitted.
Commemorative NFTs are for utility, collection, and display only.
Redeemable NFTs and Commemorative NFTs are not securities and may be bought and sold globally, including by U.S. and Canadian persons.
U.S. and Canadian persons are not permitted to purchase Upstream-listed securities but are permitted to sell securities they currently own, that have been listed on Upstream, for liquidation purposes only.
If funding Upstream with an ACH or wire bank payment, users must complete Upstream’s in-app KYC process to get their new, FDIC-insured, Upstream U.S. bank account details via email. Users may then initiate a funds-transfer from their bank or financial institution to this new U.S. Dollar bank account. If you haven’t completed KYC yet or didn’t select ‘Bank’ as the ‘Deposit From’ option when you completed the process initially, then please go through KYC again selecting the ‘Bank’ payment method. Users may complete the simple KYC process by tapping the settings icon and the KYC option inside the Upstream app.
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