Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials HomeFinanceNewsAbaxx calls for probe, hires Paul Weiss after short seller’s attackShares of Abaxx have fallen 25 per cent since June 10, the day before Viceroy disclosed its short positionAuthor of the article: You can save this article by registering for free here. Or sign-in if you have an account.Viceroy also questioned Abaxx’s technology, arguing that key parts of its business rely on software from outside vendors rather than proprietary infrastructure. Photo by Timon Schneider/SOPA Images/LightRocket via Getty ImagesAbaxx Technologies Inc. is asking Canadian market regulators to investigate whether manipulative trading occurred in its shares, and has hired law firm Paul Weiss for help in response to a short-selling campaign by Viceroy Research.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorThe Toronto-based market infrastructure company said Sunday it has contacted the Canadian Investment Regulatory Organization, or CIRO, to request a review trading activity in its stock by Viceroy and other parties. Abaxx also said its Singapore business had proactively contacted the Monetary Authority of Singapore regarding allegations made by the short seller.The move follows a report by Viceroy, which disclosed a short position in Abaxx and argued that the company’s exchange appears busier than it really is. The research firm said much of the trading volume on the Abaxx Exchange is “sustained by management incentives,” rather than by commercial customers.Breaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Posthaste will soon be in your inbox.We encountered an issue signing you up. Please try againViceroy pointed to low open interest, trades that appear to offset one another and spikes in activity around investor events and company announcements.Viceroy also questioned Abaxx’s technology, arguing that key parts of its business rely on software from outside vendors rather than proprietary infrastructure. The firm criticized the Canadian company’s use of high-profile industry figures in investor communications, including former Goldman Sachs commodities chief Jeff Currie, saying their roles may be less significant than investors perceive.Shares of Abaxx have fallen 25 per cent since June 10, the day before Viceroy disclosed its short position, giving the company a market capitalization of $1.3 billion.Viceroy didn’t comment Sunday on Abaxx’s move to contact regulators.Abaxx rejected the allegations, calling them false, defamatory and part of a “short-and-distort” campaign designed to profit from a decline in its share price. The company said neither it nor any of its subsidiaries is under investigation by any regulator, and said “wash trading” is prohibited under the exchange’s rulebook and monitored through a market-surveillance program.The company also sought to reassure investors about its finances and operations, saying it has enough cash to fund roughly seven quarters of operations without needed to raise money. Abaxx said June trading activity has continued to increase, with average daily volume rising 12 per cent from May and open interest climbing more than threefold. Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.