Are you a new retail investor? Bookmark these investing tips from Frank Nez
Disruption. Disruption in the finance world. New age retail investors have taken notice of the corrupt ways of our predecessors. Yes, predecessors. We’re stepping in now. Here’s to a better world.
I want to begin by saying I’m not a financial advisor. But I strongly believe in the power of finance, knowledge, and freedom.
Welcome to Franknez.com – the blog where you can digest posts on personal finance, side hustle ideas, entrepreneurship, and trending investing topics.
Lets get started.
I want to dive into FTDs and provide new retail investors as well as the ape community with valuable information that’s easy to read and pick up. And as you can tell from the title of the post, this message is also to address the ones who should be doing their jobs.
This post is going to be relating to what’s going on with FTDs and AMC Entertainment. Let me walk you through the basics first before we dive in deep and uncover what’s really going on with AMC right now. By the time I was finished writing this article I realized we have the knowledge and power for real change as long as we continue to stick together.
Thank you for being here today.
What is a fail to deliver?
A failure to deliver is a situation where one party in a trading contract does not deliver on their obligation.
These trading contracts can be in the form of purchasing shares, call options, etc. An FTD simply means a submitted purchase did not execute, or go through.
By now you’ve probably heard there’s a ton of these FTDs circulating AMC. We’ll get more into that very soon, I promise.
So, what causes failure to delivers?
There are two primary reasons why failure to delivers occur.
- A buyer (retail investor) does not have enough money to pay for the transaction.
- A seller (short position) does not own all or any of the underlying assets meaning they cannot make the delivery.
*I want to point out that failure to delivers can also occur if there’s a technical problem in the settlement process carried out by the clearing house.
Citadel is Robinhood’s clearing house… They process settlements from investors trading with Robinhood. And as most of you know, Robinhood halted the purchasing of GameStop and AMC stock back in February. The announcement was made on Thursday, January 28th that they were limiting the trade of both GameStop and AMC stock.
Though Citadel has claimed in court that they had no role in Robinhood’s decision to halt buying, they are one of the biggest hedge funds shorting both AMC and GME stock.
Hedge funds should not have this much power.
Clearing houses should be neutral and only handle transactions. Their job should be to report illicit activities to the SEC. The power hedge funds have must be distributed amongst branches so that they oversee each other and ensure no one branch is too powerful.
What’s causing failure to delivers in AMC?
I strongly doubt retail investors lack the spending power to meet their number of share goals. What’s causing AMC failure to delivers has more to do with the processing of synthetic shares and lack of regulation.
What we’re seeing here is:
- Clearing houses cannot process the orders due to shorts and hedge funds not having possession of those assets.
- An insane amount of naked shares (synthetics) are being used to drive AMC’s stock price down.
You would think some sort of agency would be created to oversee this manipulation right? I’ll get to that shortly.
What is naked short selling?
Naked short selling is the process of shorting a stock without first borrowing the asset from someone else or ensuring that it’s available to borrow.
In other words, it’s fairy dust. Non existent, not real. Straight manipulation.
Is naked shorting illegal?
Naked shorting is considered to be illegal though firms who have used this technique to bankrupt businesses have never seen accountability due to succeeding in doing so. In other words, they’ve been able to wash their hands once a businesses has been taken off the grid.
However, AMC is no longer on the brink of bankruptcy. AMC is no longer going extinct. Naked shorting this company is not going to make its retail investors disappear and it’s certainly not going to stop Adam Aron, CEO and President of AMC Entertainment from moving the business forward.
I’m confident hedge funds naked shorting AMC are certain to face consequences this time around. We’re not leaving.
The 2008 crisis
2008 is when we saw a massive surge of failure to delivers. This is because hedge funds sought out businesses who were on the brink of collapsing to make some dirty money from.
The use of naked shorting allowed failure to delivers to rise, ultimately bankrupting businesses. People lost their jobs and families faced real distress and turmoil. The parties who participated in these illegal and unethical strategies faced no consequences and boasted their ‘victory’ publicly.
Where was the SEC? The SEC has the power to stop fraud and monitor whether institutions have adequate capital relative to their trading positions as well as the proper risk management systems that could have prevented this catastrophic loss for millions of Americans.
Bare with me. I’m going to let you know exactly who the SEC is, or at least who they portray to be.
AMC’s millions of fail to delivers
The community of retail investors have just recently pulled up this data from the SEC ‘fails-to-deliver’ data.
AMC Entertainment saw over 7.5 million failure to delivers with almost 3.1 million occurring on the 13th and 14th of April, 2021.
The parties behind these purposeful failure to delivers need to be held accountable.
What can retail investors do?
Retail investors should continue to educate one another on this very important matter. The community as a whole is not only revealing the manipulation that occurs in the stock market, but uncovering the malicious intentions hedge funds have towards AMC Entertainment.
The SEC must put a stop to naked short selling at once
The U.S. Securities and Exchange Commission is an independent agency of the United States federal government that was created to protect investors as well as the national bank after the market crash in 1930.
Lobbying – in politics, lobbying is the act of lawfully attempting to influence the actions, policies, or decisions of government officials, most often legislators or members of regulatory agencies.
So why isn’t the SEC doing anything about the illicit activity of naked short selling in the market? More specifically with what’s occurring with AMC and GameStop right now?
If you could say one thing to the SEC
If the SEC sees this article and you had a chance to get your voice heard, what’s one thing you would say to the SEC?
Leave it in the comments section below and make sure you’re heard.
Words of certainty AMC
Unapplied knowledge is wasted knowledge so be sure to spread this message with the community. We as a whole are uncovering something massive. And yes, I truly believe we can make a change here.
FUD should officially be off the table. We have all the data and certainty we need to see this through. Not only are retail investors going to profit from a short squeeze, but justice will be served for the financial crisis of 2008 and the current attacks on AMC and GameStop.
I also want to say thank you to the apes who are keeping everyone informed and to those of you who continuously take the time to do the research. Only by sticking together will the community see massive change. Stay positive.
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Are you a new retail investor? Bookmark these investing tips from Frank Nez
Just a question. Does uncovering unbelievable corrupt total BS = short squeeze? It’s great to uncover fraud, we have expected that all along and will continue to uncover fraud but I have learned over the years being right about fraud does not always mean things falls in your favor. It is one thing if an overseeing agency sees the fraud but it is another thing that they actually do something about. We can call foul play all day long but in the end, can’t they say “well, who ever said life was fair”. Please explain the continuous uncovering of corrupt BS = a righteous short squeeze or at least a just outcome. In my heart of hearts, I want this squeeze to happen but in the end, just because it is all our favor for multiple reasons, what really is prevent these regulatory agencies overseeing all this just say “tough shit, life is not fair.”
Hi Andrew. I strongly believe in WE THE PEOPLE. We have the right to overthrow any decentralized form of government that is not fit should our voices not be heard. We are being patient. We need regulators to do their job so that the market becomes a free market as it is intended to be. I will fight for the cause and for the community as long as it takes.
Thank you Franknez, I have found your blog to be an informative and honest source during this corrupt time of FUD. I feel that the SEC has had more than enough evidence to act upon the injustice inflicted by the hedge funds. It really leads to questions as to why we haven’t yet seen action. Are there higher ups tying the SECs hands, for fear of a complete market collapse? Or is the SEC full of immoral, greedy players looking to line their own pockets. I am truly hopeful that the SEC sees the truth, and is in the pursuit of justice. Perhaps they truly are on the side of good, and have yet to come forward because they are still compiling evidence to demolish these evil hedge funds. Whatever their role is in this game – they need to realize that they should align themselves with the forthright- the planet of the apes. If they do, they have a chance to play a hero role in our upcoming AMC smash hit movie. Otherwise, they will go down in history as the most corrupt, evil, government body of the 21st century. 🦍s are winning. It’s a matter of time. We are not giving up. We are an army of the people. SEC – I really hope you’re with us. Because you sure as hell don’t want to be against us. Ape-out.
Joanna – thank you for your comment. You are absolutely right. We are not giving up, and we are not going anywhere. The good guys always win.
Do you have any information regarding the duration of time between these FTDs occurring and when they are settled? The only information I’ve found from the Fed suggests that fails settle quickly, usually less than 5 days (source: https://www.federalreserve.gov/regreform/rr-commpublic/tch-meeting-20171012.pdf).
I understand that this creates an opportunity for a naked short to occur, FTD, then delay covering until a cheaper share can be obtained (ideally). I’d also be curious to see what proportion of the shares traded in a day are FTD over a wider period of time because on April 14, 2021 that 2.7M of FTD shares represents ~5.3% of the daily trading volume (51.17M).
Interesting concept to discuss but it feels like there’s a bit more to it.
Hey James – it certainly feels like there’s more to it. I don’t have more information regarding the settlement time. Thanks for sharing the PDF with the community.
The SEC needs to start doing there job. We pay taxes to make sure they do there job. They need to make naked short selling illegal at all costs. This should be a free market, not a market we’re the hedge funds can manipulate the market to there own free will and not be prosecuted for it. They need to be prosecuted for 2008 and for everything they have done from then till this current year. The federal government needs to make this right. If they don’t it will only prove that they are colluding with these prominent corrupt hedge funds all along. So we tell them stand up and hold them accountable now and stop this manipulation once and for all.
Absolutely! There needs to be justice
375 shares… NOT LEAVING NOT SELLING TIL THEY COVER FTDS.. SYNTHETICS AMC SHAREHOLDER
I believe we need to educate the mass public to the practice of naked shorting and how it has ruined small companies over the years. Since their business model bankrupted small companies they decided to go after bigger ones bc they are greedy bastards. We need to put pressure on the DTCC as they are the ones responsible for the loan sharing program which made naked shorting possible.
I agree with you 100% Jason ☝️
SEC needs to step up and do their job as so many people around the world know exactly what is going on with naked shorting. If they don’t people like myself that have over a million dollars in the stock market will pull all their money out and invest in crypto currency as a block chain cannot creat synthetic or fake shares.
Dear SEC, FINRA, and other financial regulators:
Please do your fucking jobs, and stop embarrassing the US by making our financial system a joke on the global stage. Any day now would be great.
P.S. *Spoiler* It’s too late. This has gone on unfettered way too long for the rest of the world to ever have faith in our market again.
I plan on moving to Belize so I won’t have to put one more dollar in our corrupt, broken economic system. I’m hearing many other people say similar things.
I have faith in the universe. As the community grows and more of us spread the truth, justice will be served. The people have power for change when they unite.
It seems all governing bodies what are supposed to be protecting the retail investors, are in fact only protecting the hedge funds. This insane corruption for all those perpetrators involved has to be stopped at once. Look at all the damage cause in 2008,a repeat of that now will be catastrophic. Now is the time for these governing bodies to stand tall in this world and do the right thing for once… STOP ALL MANIPULATION.
Well said 💯💯💯
I’ve always wanted to get an answer from Frank “King Kong ain’t got Shit on Me” Nez! Really appreciate the work you do and the millions of Apes you have helped get a new lease on life because your information and the 10 million ape army you inspire. This community seems like honestly one of the only ways to pay their student loans, credit card debt, etc. they saddle kids with before their brains have finished forming, so thank you!!!
I wanted to ask, will the new 002 SEC rule help stop naked shorts? If not, what if any affect/s do you think it will have?