Richard Ketchum, NYSE head of regulation, voiced concerns about short-selling practices at NYSE’s annual conference.
Ketchum told reporters that the his department has seen instances of traders selling short and then covering the difference by using offering stocks from someone participating in the short sell.
Short selling stock is the practice where traders try to profit from declining prices by selling borrowed stock before buying the stock back at a lower price.
He said authorities have not decided whether they will pursue legal action yet because they are still investigating.