Market Overview

Bank Of Montreal Forbids Shorting Cannabis Stocks Due To High Volatility

Share:
Bank Of Montreal Forbids Shorting Cannabis Stocks Due To High Volatility

One of the biggest banks in Canada, Bank of Montreal (NYSE: BMO), does not allow investors to short cannabis stocks, according to the Financial Post.

The bank has reportedly blocked the option of shorting cannabis stocks through its InvevstorLine brokerage to at least four retail investors. The investors were unable to examine another option to short those stocks with the Bank of Montreal.

The investors found that shorting was blocked for the entire cannabis sector. 

 “They said from a risk perspective, it’s too volatile,” one retail investor told the Post.

Interestingly, the shorting was not closed off from institutional investors who relied on BMO's prime brokerage desk, nor for the investment advisors of the bank, the publication reported. 

Click here for more information about the upcoming Benzinga Cannabis Capital Conference Oct. 22-23 in Chicago.

These are recent restrictions, as one of the investors told the Post they were allowed to short CannTrustHoldings Inc (NYSE: CTST) via BMO’s InvestorLine in July.

Toronto Dominion Bank’s brokerage, the National Bank of Canada and Canadian Imperial Bank of Commerce are allowing shorting of stocks in the cannabis sector, the Post said. 

Don’t miss out on the top cannabis stories of the day. Click here to sign up for our daily insider newsletter

Posted-In: Financial PostCannabis News Markets Media Best of Benzinga

 

Related Articles (BMO + CTST)

View Comments and Join the Discussion!

Cannabis Movers

Sign up for our secret cannabis newsletter!
Never miss out on the breaking news in the Cannabis Industry!

Alibaba Buys E-Commerce Platform Kaola For $2B

Mid-Morning Market Update: Markets Open Higher; Genesco Earnings Beat Estimates