Banking giant JPMorgan Chase & Co.may restrict the trading of certain U.S. cannabis-related stocks starting November 8. According to Reuters, the company sent a letter to prime brokerage clients, citing compliance reasons: “J.P. Morgan (JPMS) has introduced a framework that is designed to comply with U.S. money laundering laws and regulations by restricting certain activities in the securities of U.S. Marijuana-Related Businesses,” the letter read. It seems, however, the restriction will only apply to Over-The-Counter (OTC) traded stocks, and limit new acquisitions and shorting of these equities. JPMorgan clients with pre-existing positions will be allowed to sell their shares at will. Other than these exceptions, JP Morgan noted, cannabis-related businesses that are fully compliant with federal U.S. law, and can thus be listed on the Nasdaq, the New York Stock Exchange or the Toronto Stock Exchange will continue to be permitted to trade. These are non-plant-touching businesses operating in the U.S. and elsewhere, as well as companies working with the cannabis plant is federally legal settings, such as Canada.
Mmp News Author, Medical Marijuana Program Connection, 11/02/2021 20:23:00