It also equivalates to 24.99% of the shares outstanding.
Below I break down their proof of naked shorting in AMC.
Welcome to Franknez.com – proof of naked shorting has surfaced in a data driven article by a community member. I will break down pieces of the long article to simply its content.
Let’s get started!
In this excel file you’ll find that AMC has the largest percentage of shares outstanding compared to a variety of ticker symbols held by Apex.
The second company with the highest shares outstanding is CAR stock at 16%, which just had a short squeeze.
Proof of Naked Shorting in AMC
The lowest point of this graph reflects the 24.99% shares outstanding on Apex (December).
You can imagine how much higher this percentage was back in January and May of 2021 (peaks).
So, although we see an incredible amount of share dilution last year, the percentage is still rather high going into 2022.
LTF argues that the percentage should be around 1% or less considering Apex is not even one of the top clearing firms and touches topic on “market-maker alliance”.
While one might argue that we would need more information from other market makers to validate the existence of naked shares, this is certainly a good start.
The argument isn’t about how many naked shares are out there, but whether they exist or not.
Let’s hear what Charles Gradante has to say.
Also, be sure to watch the topic discussion on YouTube at the end of the article.
Charles Gradante on Naked Shorting
In this incredible event panel, hedge fund industry expert Charles Gradante provides us with insight on what’s truly happening from Wall Street’s perspective that mainstream media isn’t talking about.
While mainstream media and regulators look at retail investors, Charles Gradante explains market makers favor shorting stock, creating a massive conflict of interest given the incredible amount of power they have over the markets.
Charles Gradante says regulators don’t know how to handle “it” when referring to the market manipulation surrounding “meme stocks”.
“When shorting got out of hand, the market makers created synthetic shorts”
Charles provides retail investors with an immense amount of value in this short video.
He walks us through the taking away of the buy button in order to benefit market makers and hedge funds who went short on AMC and GameStop.
Ladies and gentlemen, we now have proof of naked shares in the market.
Retail investors must now look onto regulators to ensure every single naked share out there is bought back and reflected accurately on the lit market.
The biggest transfer of wealth will require individuals to tackle their rights for it.
Once again, the ape community was right.
What to expect moving forward
AMC stock continues to be bought and held by retail investors across the world in attempts to squeeze big shorts from their positions and create real change in the markets.
The play has become more than just a trade, it’s become a movement.
Persistence and patience are what will create this massive transfer of wealth for anyone holding these heavily and overleveraged stocks.
Regulators will be forced to find solutions with integrity or face the consequences from the new world.
Subscribe to the blog for more content and updates.
Wall Street Journal just published a ridiculous piece on the AMC community.
They refer to the community as a mob and disrespect AMC’s CEO Adam Aron by saying apes made the CEO “play by their rules.”
This discredits the CEO and portrays the community as an entirely different culture.
Come to find out, Ken Griffin actually owns Wall Street Journal.
Let’s dive right into it.
Welcome to Franknez.com – the blog that fights FUD media. When the community is getting attacked you know we’re doing something right.
Let’s get started!
Now, we can’t be too harsh on the two writers who published this article.
Afterall, they’re just doing their job, right?
Wall Street Journal Parent Company
News Corp is Wall Street Journal’s parent company.
Not only do they have ownership of the Wall Street Journal, but they also own other DOW Jones assets such as the Dow Jones Newswire.
Other media brands by the DOW Jones include Barrons and MarketWatch, media companies who have been attacking AMC Entertainment all year.
All these finance media platforms are tied and owned by News Corp.
So, where does Ken Griffin come in?
Ken Griffin Owns Almost 1.4 Million Shares of News Corp.
CEO of Citadel Securities, Ken Griffin owns News Corp, the company that has ownership over Wall Street Journal, Barrons, MarketWatch, DOW Jones, and other media outlets spewing ill words of AMC Entertainment and its community.
Michael Kurlander, the Deputy Global Treasurer of Citadel Securities has resigned after 4 years with the hedge fund. Michael Kurlander is now the CFO for Pagaya, a financial AI tech company.
Citadel has been losing billions of dollars since the rise of retail investors in the AMC and GameStop saga. For this reason the community speculates Citadel securities is a sinking ship.
Michael Kurlander recently posted on LinkedIn, “Closing one chapter and beginning another…”.
Welcome to Franknez.com – the blog where you can digest content on personal finance, stock, crypto, and market news.
Lets get started!
Michael Kurlander career history
From October of 2017 to June of 2021, Michael Kurlander was known as Citadel Securities’ Deputy Global Treasurer. Prior to working with Citadel, he spent 17 years of his life as a managing director at Goldman Sachs.
So what exactly is a deputy global treasurer?
What does a Deputy Global Treasurer do?
According to Zip Recruiter, a Deputy Global Treasurer assists a group of financial advisors related to supervising investments, risks, and financial operations.
As a Deputy Global Treasurer, other obligation include:
Verifying financial risks to investments
Assessing the institutions liquidity
Organizing and approving budgets for financial projects
And ensure the financial health of the institution
What are the qualifications to work as a Global Treasurer?
Obviously you’ll need some sort of education right? A bachelors degree is the entry tier while a masters degree is needed for policy and government positions.
You’ll also need excellent communication skills in order to present financial reports to government officials and community stakeholders.
As the community knows, Citadel securities is under high scrutiny for overleveraging their positions in AMC Entertainment.
Dark pools allow hedge funds to make transactions that aren’t required to be reported. Accurately at least.
As a Deputy Global Treasurer, Michael Kurlander certainly had a lot of lawful and ethical duties to respond to.
Often times people leave a valuable position in a company is due to the lack of ethics and integrity of a company or head.
This is what I’ve noticed from the most successful people I personally know in my life.
Closing one chapter and beginning another
If Michael Kurlander left Citadel for a rapidly growing financial tech company, then it must be for good reason.
I suppose when the head of a company is selling his multi-million dollar properties to keep the business afloat it might be a good indicator it’s time to jump ship.
Citadel continues to amount extreme losses due to the continuous shorting of a stock that is no longer on the brink of extinction. Ego kills dreams.
For more news like this be sure to subscribe to the news letter and give this post a like down below. These quick and short articles will provide evidence related to the communities curiosity on Reddit and Twitter.
And if you haven’t already, connect with me all social platforms for related articles and behind the scenes content. Thanks for reading!
Judges Rao, Walker, and Sentelle, asked tough questions during the first part of this Citadel vs SEC lawsuit hearing.
The hearing took place yesterday, October 25th, 2021 but continues today.
I’m going to be breaking down parts of the hearing and summarizing key points.
I will also be linking the video of the live lawsuit hearing for your viewing pleasure.
Welcome to Franknez.com – the Citadel vs SEC lawsuit hearing has commenced. Be sure to bookmark this page is this developing story unfolds.
Let’s get stared!
The lawsuit hearing started with Judge Walker asking Mr. Wall, Citadel’s lawyer, “Mr. Wall, do you think latency arbitrage exists?”
To which Mr. Wall responded, “[stutters] I don’t think the court has to get into it..”
And this set the entire mood of what was about to go down.
To start off, all three judges were great.
Both Mr. Wall and Catherine Stetson of IEX, were asked very fair questions.
Let’s begin with Citadel’s argument against SEC and IEX technology.
Citadel Argument Against The SEC
In the legality of things, Citadel Securities is suing the SEC for ‘violating’ the Administrative Procedure Act that sets requirements for making changes to agency regulations.
As you know, the changes the SEC made was approving the D-Limit order through the IEX Exchange.
This D-Limit order eliminates market arbitrage and predatory tactics against retail investors by using AI technology to level the share prices of stock throughout all exchanges and offering higher and better quality prices.
Citadel Securities says the SEC disregarded important data showing that the rule would hurt retail investors.
On a side note, Citadel Securities is not for retail investors.
Retail investors do not want their orders going through Citadel nor any association having to do with the market maker.
Citadel Securities is not just a market maker, but a hedge fund and dark pool altogether.
Their predatory tactics against retail investors have suppressed the momentum rallied by the AMC and GME community looking to spark a short squeeze from these heavily and overleveraged stocks.
What Is The Data That Would Hurt Retail Investors?
According to Mr. Wall, the data the SEC missed that would hurt retail investors is that share prices would be higher due to IEX.
He argues that IEX is not sufficiently tailored for retail investors but fails to identify exactly how they miss the mark.
Mr. Wall is suggesting that a leveled playfield would harm retail investors because IEX is able to set better and higher prices than their current model…
It seems Citadel wants to protect retail investors from paying higher and more accurate share prices across all exchanges?
Ladies and gentlemen, this argument is pitiful.
Retail investors have been fighting for a fair market and for a leveled playfield where high frequency trading isn’t affecting their trades and long-term investments.
In simpler terms, IEX would not hurt retail investors but rather lay a foundation towards a more effective and fair market.
It’s this very reason the hashtag #CitadelIsNotForRetail has been trending on Twitter.
I think it’s fair to say that if we took a vote from retail investors, majority would vote for an IEX solution.
IEX Just Wants Liquidity (Bigger Market Share)
Mr. Wall argued that the premise doesn’t even surround latency arbitrage or market arbitrage but rather IEX’s desire for more liquidity, or bigger market share.
When avoiding questions about predatory tactics often used by high frequency trading firms, Mr. Wall deflects confirming the current use of market arbitrage by claiming IEX simply wants to gain liquidity.
In the lawsuit hearing, Mr. Wall confirms Citadel processed up to 56% or retail orders within a month time-frame.
It seems Citadel Securities is more concerned about losing market share than protecting retail.
But that’s not difficult to see.
Citadel Securities has proven to abuse their power and we’ve seen this specifically in AMC and GME stock.
As one of the top short sellers of the two stocks, we’ve seen millions of failure-to-delivers get reported, and the overextension of dark pool trading and even naked shorting occur.
High frequency trading has further given Citadel Securities a massive advantage over retail investors going long on these stocks.
Citadel Securities Argues No Latency Arbitrage Has Taken Place
Mr. Wall mentions that maybe a decade ago latency arbitrage could have been possible but not in today’s world.
This is where we see Catherine Stetson of IEX step in to give her stance in this lawsuit hearing.
“Citadel Pays Hundreds of Millions To Brokers”
Catherine Stetson made a great entrance providing backing information that IEX data has indeed found latency arbitrage.
IEX Exchange is the firm that has introduced innovation to the market with its D-Limit order.
The D-Limit order uses AI technology to execute high quality predictions across the market to set higher and more accurate share prices.
This order type eliminates market arbitrage strategically used by high frequency trading firms such as Citadel Securities and gives retail investors a fair playing field.
When orders are process by Citadel Securities, they are able to move them through several different exchanges, allowing them to profit from slower loading share prices on foreign exchanges.
Orders being process through IEX’s model enables the share prices to load equally amongst all exchanges.
Citadel Securities argues that this model intervenes with the natural laws of the stock market.
The same ones that have allowed them to take advantage of market participants.
Catherine Stetson made a valid point when she said, “Citadel pays hundreds of millions of dollars to get retail orders, and profit from them.”
During the lawsuit hearing, Judge Walker sternly addressed Mr. Wall by saying, “You’re the one who’s trying to regulate your way into market victory.”
It’s not difficult to see the intentions of both parties.
“We Are In The Middle of A Speed-War We Never Signed Up For” – Catherine Stetson
Catherine Stetson made a remarkable statement that addressed the real issue of high frequency trading in the markets.
Her statement regarding retail investors participating in a speed-war we never signed up for sums up the deceit of market maker, hedge fund, and dark pool, Citadel Securities.
This is a statement declaring change in our markets.
This is a statement fighting for a fair market, and a voice aimed towards protecting retail investors.
IEX is seeking to eliminate market arbitrage from high frequency trading firms and begin processing orders that will put retail and financial institutions in the same playfield.
BREAKING: Citadel is suing the SEC over the new D-Limit order that would protect displayed lit orders from being picked off by latency arbitrage players.
“The SEC failed to properly consider the costs and burdens imposed by this proposal that will undermine the reliability of our markets and harm tens of millions of retail investors,” a Citadel Securities spokeswoman said in an email on Friday, via Reuters.
Now, this has been an ongoing battle since last year. However, new documents show this fight has risen in court again.
In fact, the new court date is set for October 25th of this month. This is big.
Welcome to Franknez.com – today I’m going to be breaking down the D-Limit order and the Citadel Securities LLC vs SEC court hearing.
Let’s get started!
Community, the news that has come up today has been an ongoing fight since before GameStop began moving up between the months of October-January.
I’m going to break down the entire investigation leading up to today’s recent news and court date.
What Is The D-Limit Order?
The D-Limit order is designed to protect liquidity providers from potential “adverse selection” by latency arbitrage trading strategies.
This rule basically gives traders a way to buy or sell stock at the exchange while protecting them against unfavorable price moves, via Reuters.
“The D-Limit Order is an artificial intelligence order type that protects displayed lit orders from being picked off by latency arbitrage players.”
“It aims to benefit displayed equity market quotes with better prices, larger displayed sizes and more competition among liquidity providers.” via, JLN.
This order is a massive threat to Citadel as it takes away predatory trading through the practices of market arbitrage.
What Is Market Arbitrage?
Market arbitrage is the act of buying a security in one market and simultaneously selling it in another market for a higher price.
Traders frequently attempt to exploit the arbitrage opportunity by buying a stock on a foreign exchange where the share price hasn’t yet been adjusted for the fluctuating exchange rate, via Investopedia.
This type of trading takes advantage of everyone involved, including retail investors.
Citadel personnel argue that the D-Limit rule is detrimental to millions of retail investors and undermine the reliability of the markets.
How could you even argue the point, that’s insane!
Market arbitrage is a form of predatory trading.
The D-Limit order fights against latency arbitrage from high frequency traders such as Citadel Securities.
This D-Limit order would provide the markets with more accurate prices and prevent HFT firms from using arbitrage strategies to plummet or extensively short stocks.
In short, Citadel Securities has been fighting the SEC to continue using manipulative strategies against retail investors.
Apes in the community will have to back up the SEC to create this massive change in our markets.
Citadel Securities VS SEC October 25th, 2021
This battle between Citadel Securities and the SEC has been occurring for quite some time now.
However, Citadel and the SEC now have a new court hearing on October 25th, 2021. The fight for a fair market continues.
The lawsuit fights against the use of the D-Limit order through the IEX exchange that would provide the markets with a solution against arbitrage trading via AI technology.
Argument: Citadel Enjoys Unfair Advantages Over Other Participants
Citadel Securities has been facing major scrutiny all over social media and is now being recognized for it’s multiple scandals in the public’s eye.
In a series of documents detailing the court hearing, the SEC explains how Citadel has profited billions from high frequency trading.
This D-Limit order won’t just target Citadel Securities, it’s going after a handful of other high frequency trading firms.
Eliminating these manipulative strategies would be extremely bullish for retail investors.
For example, the markets wouldn’t be as volatile.
High frequency trading has been the cause for several market meltdowns so eliminating this practice would provide retail investors with a fair playground.
Citadel, as a market maker processes more than 40% retail investor trades in the market. 100% come from Robinhood.
This means Citadel has been making money from every trade that’s been processed merely from high frequency trading.
You essentially have this monster of a company making money off of every opportunity they can get a hold of, even if it means cheating retail investors.
Opposing this order is not protecting retail investors! Citadel is suing the SEC to continue this market manipulation and we cannot let this happen.
The Citadel Securities vs SEC lawsuit will take place on Monday, October 25th.
How Will The D-Limit Order Affect Meme Stocks?
The D-Limit order will allow momentum stocks such as AMC and GameStop to run more naturally by eliminating some of the manipulation that suppresses the stocks from performing better.
The thing about arbitrage trading is that because these hedge funds are able to find foreign exchanges where the price hasn’t yet been adjusted, they can buy ‘current’ priced stocks and sell short in other exchanges.
The D-Limit order is meant to eliminate these strategies.
This market arbitrage could very well explain how hedge funds and HFT firms have been able to short momentum stocks despite the massive buying pressure from retail investors.
Massive kudos to the SEC for fighting against Citadel. There’s a lot going on in the background that we usually aren’t aware of.
I feel that as a community we must give strength to our regulators to make a difference in the markets.
This is a democracy and we want a fair market after all.
Will The D-Limit Order Be Upheld?
The D-Limit order would create a massive change in the markets in general, not just for the ape community.
This order must be upheld. There is absolutely no justification as to why it wouldn’t be.
It is up to our community as engaged and active investors to make this information known. And it is up to us to fully support it’s nature to create real change in the markets.
Our community doesn’t have the full trust from the SEC, yet.
But we must support those in power who can fight against the market manipulation head on.
An AMC and GME short squeeze depend on it. Hedge funds will not go down without a fight so a fight it is.
A fight for a fair market, a fight for the community, and a fight for your financial freedom.
MOASS is inevitable, but it will be up to us to ensure it’s fruition.
I want to thank you apes for sharing the content, for being involved in the Discord community, and for being amazing community members across every social media platform.
The world needs people like you.
Also, be sure to check out the YouTube video of me briefly discussing this topic and don’t forget to subscribe.