AMC Stock: SEC Violates 13-Day Threshold List Rule

Market News Daily: SEC violates 13-day threshold list rule - AMC Stock.
Market News Daily: SEC violates 13-day threshold list rule – AMC Stock.

AMC Entertainment (NYSE:AMC) stock has now spent more than 25 trading days on the Threshold Securities List.

This means the SEC (Securities and Exchange Commission) is in direct violation of the 13-day threshold rule.

What is the 13-day threshold rule?

A broker-dealer with fail-to-deliver positions for 13 consecutive settlement days must immediately close out the ‘FTD’ position by purchasing shares in the open market.

There has been no ‘buy’ back of these AMC FTDs nor have we seen the company get removed from the NYSE Threshold Securities List.

AMC FTDs spiked up to more than $36 million in FTDs last month, through the report is still in the process of updating via T+35.

Last week, AMC Entertainment CEO said he asked FINRA and the NYSE to look closely at their stock due to the amounting FTDs.

“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.”

AMC Stock:  SEC violates 13-day threshold list rule.
AMC Stock: SEC violates 13-day threshold list rule.

A buyback of shares in the lit market would result in price action driving share prices up.

In the past month, AMC stock has fallen by nearly -15%.

What are FTDs?

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).

Is the SEC Complicit in Market Injustices?

According to Patrick McConlogue, an ex-Citadel Data Scientist, rules tend to heavily favor hedge funds over the average investor.

Known for exposing Citadel during the ‘meme stock’ frenzy, Patrick says “the game is not fair and it never has been. Individual investors, even when operating in a swarm, are destined to lose. How do I know? I helped design the game.”

Many investors refuse to believe that FINRA or the NYSE will attend to AMC’s CEO Adam Aron in regard to the violation of the 13-day threshold rule.

These institutions have more power than the SEC themselves, how could these rules be enforced?

AMC shareholders are demanding a formal letter from the CEO showing proof of contact with our regulators.

No update since the initial announcement has been made public so far.

Related: Credit Suisse Warns Investors of Naked Short Covering

Market News Published Daily

AMC Stock:  SEC violates 13-day threshold list rule.
AMC Stock: SEC violates 13-day threshold list rule.

For stock market, business news and updates, join the newsletter to receive weekly market news and notifications straight to your inbox. is the media site that keeps retail investors informed.

You can also follow Frank Nez on TwitterInstagramFacebook, or LinkedIn for daily posts.

You can now read exclusive FrankNez articles for only $1/mo.

  • Gain access to EXCLUSIVE FrankNez articles you won’t find here.
  • Become part of a private and safe Discord community, just for retail investors.
  • Get drawn at the end of the year for holiday giveaways.

My New Book is Out Now! Use Code: THENEZ


  1. teraflash

    Adam Aaron doesn’t make an announcement without substance. Have faith in the CEO. Retail just have to keep elevating the pressure against all those security entities that claim to protect individual investor interest but not doing anything substantial to create a fair and transparent market.

  2. mrcomp11

    When retail loses, HF’s love it, when they lose, they use their power to push their losses aside until they can turn the losses into wins, with loopholes, cheating (think tokenized synthetics), HF trading and algorithms that beat everyone with their supercomputers.

  3. Frank Nez

    Leave your thoughts below!

© 2024

Theme by Anders NorenUp ↑