AMC Entertainment (NYSE:AMC) FTDs reached new heights in Q1 of 2023.
Its record date of highest FTDs in one single day happened on February 22nd, when AMC FTDs reached $61,047,531 in value, equivalent to 10,007,792 total FTDs priced at $6.10.
AMC FTDs closed at $20,402,436 by the end of the first quarter this year, equivalent to 4.1 million FTDs dated on March 31st.
FTDs, or Failure-to-deliver occurs when one party in a trading contract (whether it’s shares, futures, or options) fails to deliver on their obligations.
These failures derive due to buyers not having enough money to take delivery and pay for the transaction at settlement.
In the case of sellers, it means not having the goods to meet that transaction.
Failure-to-delivers can occur in options trading or when selling short naked, per Investopedia.
According to Investopedia, AMC failure-to-delivers can also occur if there is a technical problem in the settlement process carried out by the respective parties (clearing houses).
Latest AMC FTD News
Recently, AMC CEO Adam Aron announced that the company has contacted both FINRA and the NYSE to look closely at the trading of their stock.
“Many of you, and we, are aware that AMC Entertainment has been on ‘The Threshold List‘ for 3+ weeks, indicating a number of FTDs.
Some of you may be pleased to learn that we have contacted both FINRA and the NYSE asking that they both look closely at the trading of our stock.”
But the CEO has not updated shareholders on what the NYSE or FINRA said in regard to the skyrocketing volume of AMC FTDs.
Last week, AMC Entertainment joined the NYSE Securities Threshold List again.
The movie theatre company has been on the list for 7 trading days now.
Yahoo Finance says the major cause of a ticker getting listed on the threshold securities list is due to market manipulation through naked shorting.
Investors have criticized the CEO for saying there have been no signs of naked shorting or ‘synthetics’ in AMC Entertainment.
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