Tag: AMC FTDs (Page 1 of 2)

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.

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AMC Failure-to-Delivers Are Skyrocketing Through the Roof

Market News: AMC Failure-to-delivers rise in February.
Market News: AMC Failure-to-delivers rise in February.

AMC failure-to-delivers (FTDs) have been begun to rise again.

FTDs topped 6.8 million in February (non-cumulative), amounting to more than $36 million in failed to close orders.

The data is still being reported which means there’s a possibility we may see higher FTDs once February’s entire month has been processed.

AMC failure to deliver
AMC FTDs – 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-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).

Investors say there’s a major conflict of interest when Citadel Clearing LLC processes retail orders worldwide.

Are AMC’s FTDs a result of naked shorting?

Majority of the retail community seems to think so.

Companies are even beginning to take legal action against the predatorial short selling strategy.

GNS CEO Shares Petition to End Naked Shorting

Recently, Genius Group ($GNS) CEO Roger Hamilton shared a petition to end naked shorting in the market.

The Naked Shorts War activist urged the retail community to sign it in efforts to raise awareness of manipulative tactics that occur in the market every day.

“They’re predators. They’re doing something illegal, and we want it to stop”, says GNS CEO Roger Hamilton.

The Board of Directors of Genius Group Limited, a leading entrepreneur edtech and education group, approved at a meeting of the Board held on Wednesday 18th January 2023, an action plan to address illegal short selling of its stock.

AMC shareholders have criticized AMC CEO Adam Aron for not addressing the manipulation in AMC Entertainment stock.

This action plan includes creating a Board-led ‘Illegal Trading Task Force’ to actively pursue all possible actions together with the regulators in their discovery and prosecution of persons engaging in market manipulation involving the ordinary shares of Genius Group.

Waging war against naked shorts is something that won’t succeed so easily, but raising awareness is a sure way to start.

Related: $GNS, $MMTLP, Taking Regulators and Manipulation Head On

Are All AMC FTDs Caused by Naked Shorts?

SEC Chairman Gary Gensler has said in the past that FTDs aren’t always the result of naked shares — but that’s as much as he’s mentioned the term.

FTDs can also result in buyers not having the funds to cover costs during execution of a security, though for retail investors this is a very unlikely scenario.

The stock market has seen its fair share of manipulation throughout the decades.

Institutions can spoof the market with ‘naked shares’ to move the price without ever having to take accountability for any real asset.

They can also lend shares they don’t own as IOUs and never have to take accountability when it comes to delivering them but rather simply reporting them as failure-to-delivers.

So, there are certainly loopholes our regulators must take into account.

And as far as the retail community is concerned, our regulators know all too well what’s occurring in the market.

Putting pressure on these regulators could be the first steps towards creating real change in the near future.

Retail investors might just be the ones to make history this decade.

Related: The SEC Green-Lighted Naked Shorting of IPOs in 2015

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AMC Demands FINRA to Look at Skyrocketing FTDs

Market News Daily: AMC Demands FINRA and NYSE Look into Stock.
Market News Daily: AMC Demands FINRA and NYSE Look into Stock.

AMC Entertainment (NYSE:AMC) CEO 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.”

AMC failure-to-delivers (FTDs) have been begun to rise again.

FTDs topped 6.8 million in February (non-cumulative), amounting to more than $36 million in failed to close orders.

The data is still being reported which means there’s a possibility we may see higher FTDs once February’s entire month has been processed.

AMC Entertainment demands FINRA and NYSE to look into FTDs.
AMC Entertainment demands FINRA and NYSE to look into FTDs.

Now AMC’s CEO Adam Aron is demanding FINRA and the NYSE to look into the company’s alarming 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).

Investors say there’s a major conflict of interest when Citadel Clearing LLC processes retail orders worldwide.

Adam Aron Demands FINRA and NYSE Look into AMC Stock

AMC Demands FINRA to Look at Skyrocketing FTDs
Market News Daily: AMC Demands FINRA to Look at Skyrocketing FTDs.

Ever since the Genius Group (GNS) CEO Roger Hamilton publicly began calling out short sellers and #NakedShorts, AMC shareholders have been hoping for Adam Aron to also join the fight.

While Adam Aron may be binded to what he can and cannot say, this is the closes we’ve see the CEO to join shareholders in an activist role.

The CEO has been criticized for not speaking out on market injustices, even after skyrocketing reports of FTDs in the company stock.

And although the CEO has said in the past he has never seen any signs of ‘synthetic shares’ floating around, today’s news requesting FINRA and the NYSE to look into the company stock is a massive win for activist investors.

There is no longer denial, now there is acceptance of an important part of market structure that must be thoroughly investigated by our regulators.

But I’m curious to know how you feel about this investigation.

Do you think this will lead Adam Aron to dive into the rabbit hole?

Do you applaud the CEO for taking this unexpected approach?

Leave your thoughts in the comment section down below.

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Market News Today - AMC Demands FINRA to Look at Skyrocketing FTDs
Market News Today – AMC Demands FINRA to Look at Skyrocketing FTDs.

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Latest Report Shows AMC FTDs Spiked to $31 Million

Latest AMC FTD Report
Market News: Latest AMC FTD reports + more.

The latest Stocksera AMC FTD report shows that fails-to-deliver dollar amount spiked as high as $31 million in November.

This is equivalent to approximately 4.3 million FTDs.

The last day of the month shows FTDs amounted to $4 million, or approximately 546.4K FTDs.

December’s report will become available during the new year.

Latest AMC FTD Report
Latest AMC FTD Report – Franknez.com | Stocksera AMC 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-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.

Here’s the latest market news.

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How Are FTDS Being Regulated?

FINRA FTDS

High AMC FTD reports have been surfacing throughout the year as parties fail to meet their obligations when it comes to fulfilling their orders.

The problem arises from clearing corporations, or self-regulatory organization FINRA.

FINRA stands for the Financial Industry Regulatory Authority and is a self-regulatory government organization that oversees U.S. broker-dealers.

The organization contains records of every trade made available intraday, including that of naked short sales.

FINRA requires firms to be able to meet their short sale requirements as well as have a process to close out fails to deliver within their required timeframes.

FTDS (fails-to-deliver) are mounting up every month according to SEC data, and FINRA is unable to get firms to close out these obligations.

The retail community is calling it foul play, alleging the possibility of lobbying within the self-regulated organization.

FINRA’s justification towards FTDs say that firms face challenges related to miscalculations.

But it’s these ‘miscalculations’ that are allowing short sellers to get away with millions of dollars in damages.

AMC Entertainment Isn’t the Only One

SEC

Many stock tickers are affected by large FTD counts, not just AMC.

But as more retail investors have educated themselves in the markets, more systemic problems seem to have emerged, or rather brought to light.

In an exclusive interview with ‘We The Investors’, SEC Chairman Gary Gensler encourages retail investors to weigh in via SEC.gov.

The retail community has raised concerns to the Chairman on social media and have even criticized his lack of action to protects retail investors.

He says the SEC is continuing to look into short selling to provide participants with better market transparency.

Proposals regarding conflicts of interest and a new settlement cycle are also underway for 2023.


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