The London Stock Exchange has had enough of internet cowboys, according to the Sunday Times.
The group has raised concerns with the Financial Conduct Authority about potential market abuse by anonymous bulletin-board posters and self-styled market gurus, warning that some of the behaviour aimed at companies on the Alternative Investment Market has crossed the line from noisy to toxic.
According to the report, several Aim-listed businesses have faced “unacceptable public abuse” from users attempting to sway share prices.
The LSE now plans to funnel detailed referrals to enforcement agencies and is urging companies to do the same “so that the pattern of conduct becomes indisputable”.
The crackdown comes as the exchange tries to revive AIM on its 30th anniversary.
The junior market has been shrinking for years: listings have collapsed from just under 1,700 in 2007 to just 625 today, and new flotations have all but vanished.
The Sunday Times article cites the LSE insisting that AIM still plays a “vital” role in nurturing growth companies, but admits change is needed, including fostering a more founder-friendly environment.
The exchange says the research shortage around smaller companies has left a vacuum that online commenters are all too happy to fill.