AMC’s Preferred Equity, APE, topped $304.9 million in FTDs last year.
The FTDs are reported for the month of August, per Stocksera.
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-deliver can occur in options trading or when selling short naked, per Investopedia.
AMC Entertainment has been a big target for short sellers looking to profit from the demise of the century old movie theatre chain.
The alarming amount of APE FTDs further proves this.
Let’s discuss it below.
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Clearing houses attack APE
According to Investopedia, APE FTDs can also occur if there is a technical problem in the settlement process carried out by the respective parties (clearing houses).
There’s a major conflict of interest when Citadel Clearing LLC transacts orders worldwide.
Ken Griffin’s Citadel LLC is short on AMC Entertainment stock, so we can see how utilities play out in the hedge fund’s favor.
It’s unlikely FTDs have been a result of retail buyers since the majority are purchasing the equity on cash accounts where orders execute almost immediately.
Naked short selling seems to be the most probable cause here as $APE has tumbled despite heavy retail interest.
The large amount of FTDs is manipulative and quite common in stocks such as AMC and GameStop.
Retail investors have taken it to Twitter to express their concerns to SEC Chairman Gary Gensler.
And although activists continue to engage the Chairman, no action has taken place to justify the ongoing market manipulation in APE, AMC, and GameStop.
Others are suggesting protesting outside SEC locations across the country.
Leave your thoughts on APE
There’s a lot of speculation surrounding APE FTDs and APE stock in general.
Are you holding APE?
Leave your thoughts below.
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Great time to buy expect to hold quick turnovers just help johnny tax man. Mr. Gensler the only word to describe him is sloppy.
I’ll be honest, I don’t know squat about the market. I’ve heard tell that a law suite against Cidadel would tie everything up in court for years however, couldn’t one bring suite against the Sec? Conspiracy to commit fraud? Malfeasant? something. They know what’s happening but do nothing. How about PFOF’s? down to the wire and then…… nothing!
How can a company loose billions and continue to do the same thing? Its my belief they’ll never stop if something doesn’t change. They probable have deals with our current government. Finally, everyone has been holding and holding and holding just waiting for something to happen. I believe its time to make something happen because waiting isn’t working and these criminals need to pay.
Have a nice day everyone.
I hold 1200 AMC and 1200 APE. Not selling but definitely buying more at these manipulated prices!!
I have been holding AMC since before the June 2021 run up and I still am. I now hold APE as well but fear we may not see the MOASS with all the fraudulent activity from the hedgefunds, DTCC, SEC, the banks and even the brokerages. With all it seems to be involved in the illegal activity, who honestly can we trust to see this through? I will NEVER sell unless we DO see MOASS but each day I see more and more corruption and it has me discouraged.
I have been holding both as well, isnt funny but no surprise our Government has chimed in on AMC and Gamestop saying SEC needs to fix the buying of all the MeMe stocks before they cause considerable damage to the future of the stock market. So disappointing and disgusting to witness all the corruption from those we should be able to trust, but unfortunately we can’t. #AMCTOTHEMOON #HOLDYOURGAMESTOPANDAMC
Why can they break the laws without any repercussion, but I cannot? Is there or is there NOT a different set of rules for them with money & see trying to get money?
How in the year 2022 do you not realize that FTDs are continually settled and not cumulative like that?
It’s like adding the daily totals in your checking account every day and assuming you’re a millionaire after a couple months of doing that.
The article has been revised and corrected.
That’s the funny part they aren’t being settled. They are just being passed on to another party. It’s hot potato and they will spring back up. It’s a loophole but the fails are still there. It’s an illusion that they were actually settled. Not possible otherwise the price would go up if they were actually settled. You see they would have to BUY then deliver those shares for them to be properly settled. Instead they are just borrowing from one party and handing them to the other party they owe them to.
Taking to the streets protesting is the only way then MSM will have to cover it!! Regardless of what they think since they’re all complicit, but the message will get to a bigger audience
Buyers didn’t cause the problem. It was ” Free” for 1:1 on your AMC shares.
Another great point!!! 🚨🚨🚨
I thought the total was what was left to deliver on that date and not cumulative
The article has been revised and updated.
Frank, this isn’t the answer but what would happen if the retail investors worldwide pulled all their money out of the markets, stopped all 401/403 investing, etc.?
The 401k was created for this exact reason, when no one trusted the capital markets, and they were desperate for investors to invest in it. It’s all a ponzi
Let’s start a discussion! Leave your thoughts below.