Category: Ken Griffin (Page 1 of 5)

SEC Now Aims To Guide Asia on Illegal Short Selling

The SEC now aims to guide Asia on illegal short selling, which has raised many concerns primarily back in U.S soil.

The Securities and Exchange Commission has failed to tackle the root of the problem back at home, prompting investors to question the SEC’s authority overseas.

Bangkok Post reports that the Securities and Exchange Commission has asked the Association of Securities Companies (ASCO) members to “adjust their short sell guidelines based on the SEC’s instructions.”

Asco has reaffirmed “there is no naked short selling on the Thai exchange.”

Asco president, Pichet Sithi-Amnuai said the Stock Exchange of Thailand (SET) has regularly examined short selling in cooperation with Asco, and has confirmed there is no naked short selling.

SEC Secretary-General Pornanong Budsaratragoon said the regulator asked Asco members to adjust their short selling guidelines based on a notice from the SEC.

Asco on the other hand suggested the SEC look into the low commission fees offered by some brokers back at home to ensure a level playing field among investors.

SET President Pakorn Peetathawatchai said, “the Thai stock exchange will not allow naked short selling to take place.”

“If anyone is found using this method, we will punish them severely.”

Public perception of such trading practices in the Asian nation remains deeply negative, with local retail traders staging protests against these activities from time to time.

In the United States, naked short selling continues to be a big problem.

In September, Citadel Securities was charged for illegal short selling violations by the SEC.

However, entities such as Citadel merely ‘pay a fine to play’.

Asia has a much stronger protection policy for its investors against naked short selling compared to the United States, earning the respect from investors overseas.

Also Read: “The Game is Rigged”, Says Ex-Citadel Data Scientist

Companies Affected by Naked Short Selling in The United States

Market News Today - SEC Now Aims To Guide Asia on Illegal Short Selling.
Market News Today – SEC Now Aims To Guide Asia on Illegal Short Selling.

Since the ‘meme stock frenzy’ of 2021, retail investors have raised concerns of naked short selling in GameStop and AMC Entertainment stock.

Ex-Citadel data scientist Patrick McConlogue says Citadel and others were able to make their money back during the trading halts, cheating investors out of their money.

Stocks such as AMC and MULN (Mullen Automotive) have been on the NYSE Threshold Securities List many times over, a clear sign a stock is being manipulated by naked shorts, says Yahoo Finance’s Jared Blikre.

A recent case that has taken regulators by a surprise is that of the MMTLP scandal.

Investors allege the strong probability of illegal short selling in the ticker after transcripts between the FINRA and the SEC were leaked of a fraud investigation that was occurring just moments before the U3 halt and delisting of MMTLP.

Companies such as Genius Group, FingerMotion and Global Tech Industries have also been open about illegal short selling investigations.

As more businesses come forward about the market injustices they are experiencing within their company’s stock ticker, the more we begin to realize just how bad the US fraud in the stock market is.

Also Read: For Five Years Citadel Marked Short Sales As Long

Market News Published Daily 📰

Market News Today - SEC Now Aims To Guide Asia on Illegal Short Selling.
Market News Today – SEC Now Aims To Guide Asia on Illegal Short Selling.

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11/16/2023 – Today I invested $1,000 in two different stocks for a brand new stock dividend portfolio I am creating for 2024.



Investors Now Start a Petition To Ban Illegal Short Selling

Investors now start a petition to ban illegal short selling, otherwise referred to as ‘naked short selling’.

The petition calls for a temporary ban on short selling itself, which would turn off the pipeline for naked short selling.

Several retail investors have already shared the petition on X, formerly known as Twitter, in an effort to raise awareness of market injustices and collectively support this strategy to get the markets back on track.

The news comes shortly after South Korea regulators announced their move to root out illegal short selling after several protests from investors.

Public perception of such trading practices in the Asian nation remains deeply negative.

Investors in the United States continue to make that strive in order to create change.

“In 2023 alone, over 30 publicly listed companies have taking matters into their own hands and are investigating their stock for abusive naked short selling, and many found a share imbalance during their investigation,” reads the petition.

“In June of 2023 the SEC admitted naked short selling is still occurring as they charged an Investment Adviser for “Abusive Naked Short Selling Scheme”.

South Korea has officially banned short selling in November of 2023 through June of 2024 after regulators found “routine” abuse of naked short selling from foreign and institutional investors.

Since Naked Short Selling is still occurring we demand a temporary halt of ALL short selling until there is a resolution.”

In the United States, naked short selling continues to be a big problem.

In September, Citadel Securities was charged for illegal short selling violations by the SEC.

According to the SEC’s order, for a five-year period, it is estimated that Citadel Securities incorrectly marked millions of orders, inaccurately denoting that certain short sales were long sales and vice versa.

You can sign the petition here.

Also Read: “The Game is Rigged”, Says Ex-Citadel Data Scientist

Repost this article on X.

Market News Published Daily 📰

Market News Today - Investors Now Start a Petition To Ban Illegal Short Selling.
Market News Today – Investors Now Start a Petition To Ban Illegal Short Selling.

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Also, thank you to all of our blog sponsors.

This year we’ve been able to increase push notifications slots making it more convenient than ever for new readers to receive their daily market news and updates.

Scroll below to view my stock purchases this month!

You can also follow me on X (Twitter)InstagramFacebook, or LinkedIn for daily news and updates on your favorite stories.


Frank Nez’s Stock Portfolio

Wondering which stocks Frank Nez is holding? Which stocks is Frank Nez buying?

Frank Nez is now sharing his exclusive and personal stock portfolio with readers, only on the Patreon.

11/16/2023 – Today I invested $1,000 in two different stocks for a brand new stock dividend portfolio I am creating for 2024.



South Korea Regulators Now Probe Into Illegal Short Selling

South Korea regulators now probe into illegal short selling trades by global investment banks in efforts to root out manipulation.

Banks that have conducted short-selling trades most frequently in South Korea will be subject to the investigation that would start in November.

The regulator said it will collaborate with watchdogs in Hong Kong and Singapore for its probe, per BusinessTimes.

The FSS will “hold those responsible” and ensure “naked short selling practices don’t take hold,” the statement said.

Naked short-selling refers to the practice of selling shares that an investor doesn’t own and hasn’t borrowed.

The agency will look into all short-selling transactions since May 2021 when the country partially lifted a ban that was imposed during the pandemic.

The watchdog will also review the short-selling consignment order processes of Korean brokerages to establish if they were aware of illegal naked short selling by global investment banks.

A special 20-person investigation team will be launched on Nov 6, the FSS added.

Public perception of such trading practices in the Asian nation remains deeply negative, with local retail traders staging protests against these activities from time to time.

In the United States, naked short selling continues to be a big problem.

In September, Citadel Securities was charged for illegal short selling violations by the SEC.

According to the SEC’s order, for a five-year period, it is estimated that Citadel Securities incorrectly marked millions of orders, inaccurately denoting that certain short sales were long sales and vice versa.

“Compliance with the order marking requirements of Reg SHO is a key component of regulatory efforts to curtail abusive market practices, including ‘naked’ short selling,” said Mark Cave, Associate Director of the SEC’s Division of Enforcement.

Also Read: “The Game is Rigged”, Says Ex-Citadel Data Scientist

Citadel Is Now Suing The SEC Over New Transparency Rule

Market News Today - South Korea Regulators Now Probe Into Illegal Short Selling.
Market News Today – South Korea Regulators Now Probe Into Illegal Short Selling.

Ken Griffin’s Citadel Securities is now suing the SEC over its new market transparency rules meant to keep institutions under tighter surveillance.

Citadel Securities and the American Securities Association, a trade group, announced on Tuesday that they are suing Wall Street’s top regulator over new rules on the funding of a comprehensive market data surveillance system.

The litigation, brought before the U.S. Court of Appeals for the 11th Circuit in Atlanta, escalates the investment industry’s battle with the U.S. Securities and Exchange Commission over the so-called Consolidated Audit Trail (CAT),” reports Reuters.

The ASA says that the SEC has “overstepped its statutory authority” and “failed to address investor and industry concerns” leaving them with no choice but to litigate.

“The Commission undertakes its regulatory responsibilities consistent with its authorities,” an SEC spokesperson said.

“The CAT is a repository of investor and transaction data meant to give regulators all-encompassing insight into U.S. market transactions.

The SEC mandated the CAT’s creation in 2012 as a response to the “flash crash” two years earlier, when a sudden plunge on major Wall Street indices temporarily erased nearly $1 trillion in market value.

Republican officials and industry representatives have said the system presents cybersecurity and privacy risks and is likely to pass undue costs on to investors.”

The Securities and Exchange Commission says the market maker violated a provision of Regulation SHO, the regulatory framework designed to address abusive short selling practices, which requires broker-dealers to mark sale orders as long, short, or short exempt.

Also Read: SEC’s Director of Enforcement Now Under Investigation for Corruption

Market News Published Daily 📰

Market News Today - South Korea Regulators Now Probe Into Illegal Short Selling.
Market News Today – South Korea Regulators Now Probe Into Illegal Short Selling.

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Citadel Is Now Suing The SEC Over New Transparency Rules

Ken Griffin’s Citadel Securities is now suing the SEC over its new market transparency rules meant to keep institutions under tighter surveillance.

Citadel Securities and the American Securities Association, a trade group, announced on Tuesday that they are suing Wall Street’s top regulator over new rules on the funding of a comprehensive market data surveillance system.

The litigation, brought before the U.S. Court of Appeals for the 11th Circuit in Atlanta, escalates the investment industry’s battle with the U.S. Securities and Exchange Commission over the so-called Consolidated Audit Trail (CAT),” reports Reuters.

The ASA says that the SEC has “overstepped its statutory authority” and “failed to address investor and industry concerns” leaving them with no choice but to litigate.

“The Commission undertakes its regulatory responsibilities consistent with its authorities,” an SEC spokesperson said.

“The CAT is a repository of investor and transaction data meant to give regulators all-encompassing insight into U.S. market transactions.

The SEC mandated the CAT’s creation in 2012 as a response to the “flash crash” two years earlier, when a sudden plunge on major Wall Street indices temporarily erased nearly $1 trillion in market value.

Republican officials and industry representatives have said the system presents cybersecurity and privacy risks and is likely to pass undue costs on to investors.”

Citadel was recently fined $7 million in penalties for naked short selling.

The Securities and Exchange Commission says the market maker violated a provision of Regulation SHO, the regulatory framework designed to address abusive short selling practices, which requires broker-dealers to mark sale orders as long, short, or short exempt.

“Compliance with the order marking requirements of Reg SHO is a key component of regulatory efforts to curtail abusive market practices, including ‘naked’ short selling,” said Mark Cave, Associate Director of the SEC’s Division of Enforcement.

SEC Commissioner Now Says Securities Lending Facilitates Illegal Trading

Market News Today - Citadel Is Now Suing The SEC Over New Transparency Rules.
Market News Today – Citadel Is Now Suing The SEC Over New Transparency Rules.

SEC Commissioner Jaime Lizarraga said on Friday that securities lending facilitates illegal trading.

The official SEC statement comes after regulators have been expected to adopt new market transparency rules that will shed light on short sellers and other market participants.

“As with securities lending, short sales, provided they are conducted in compliance with applicable rules, can play a valuable price discovery role in our capital markets.

That said, they can sometimes contribute to, or even cause, precipitous price declines, facilitate market manipulation, and generate market uncertainty and volatility”said Commissioner Lizarraga.

“To minimize the gap between these benefits and downsides, the Commission’s action today strikes the appropriate balance between increased transparency for investors and regulators of short sale-related data, and concerns about real-time disclosure of trading strategies.

Currently, Regulation SHO is the primary rule governing short sales of equities.

Although this rule imposes some recordkeeping obligations on broker-dealers, it does not require market participants to track whether short-sellers cover their short sales or report bona fide market-making information on a regular basis.

Today’s rule will shine a light on short sale activity by institutional investment managers.

It fills gaps in the data these managers currently report about their monthly and daily short sale activities.

This data is essential for the Commission to assess and monitor risks related to large short positions, for reconstructing market events, and for deterring fraud, manipulation, and other potential market abuses.

Today, investing communities have raised concerns of market manipulation in stocks such as AMC EntertainmentMeta MaterialsFingerMotionGlobal Tech Industries, Mullen Automotive, and many more.

Stock manipulation from short sellers, primarily hedge funds, is a topic that main street has been urging our regulators to tackle head on.

Also Read: SEC’s Director of Enforcement Now Under Investigation for Corruption

Market News Published Daily 📰

Market News Today - Citadel Is Now Suing The SEC Over New Transparency Rules.
Market News Today – Citadel Is Now Suing The SEC Over New Transparency Rules.

Don’t forget to opt-in for push notifications so you don’t miss a single article!

Also, thank you to all of our blog sponsors. This year we’ve been able to increase push notifications slots making it more convenient than ever for new readers to receive their daily market news and updates.

You can also follow me on TwitterInstagramFacebook, or LinkedIn for daily news and updates on your favorite stories.


Become a Sponsor 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.


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