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.”
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.
Disruption. Disruption in the finance world. New age retail investors have taken notice of the corrupt ways of our predecessors. Yes, predecessors. We’re stepping in now. Here’s to a better world.
I want to begin by saying I’m not a financial advisor. But I strongly believe in the power of finance, knowledge, and freedom.
Welcome to Franknez.com – the blog where you can digest posts on personal finance, side hustle ideas, entrepreneurship, and trending investing topics.
Lets get started.
I want to dive into FTDs and provide new retail investors as well as the ape community with valuable information that’s easy to read and pick up. And as you can tell from the title of the post, this message is also to address the ones who should be doing their jobs.
This post is going to be relating to what’s going on with FTDs and AMC Entertainment. Let me walk you through the basics first before we dive in deep and uncover what’s really going on with AMC right now. By the time I was finished writing this article I realized we have the knowledge and power for real change as long as we continue to stick together.
Thank you for being here today.
What is a fail to deliver?
A failure to deliver is a situation where one party in a trading contract does not deliver on their obligation.
These trading contracts can be in the form of purchasing shares, call options, etc. An FTD simply means a submitted purchase did not execute, or go through.
By now you’ve probably heard there’s a ton of these FTDs circulating AMC. We’ll get more into that very soon, I promise.
So, what causes failure to delivers?
There are two primary reasons why failure to delivers occur.
A buyer (retail investor) does not have enough money to pay for the transaction.
A seller (short position) does not own all or any of the underlying assets meaning they cannot make the delivery.
*I want to point out that failure to delivers can also occur if there’s a technical problem in the settlement process carried out by the clearing house.
Citadel is Robinhood’s clearing house… They process settlements from investors trading with Robinhood. And as most of you know, Robinhood halted the purchasing of GameStop and AMC stock back in February. The announcement was made on Thursday, January 28th that they were limiting the trade of both GameStop and AMC stock.
Though Citadel has claimed in court that they had no role in Robinhood’s decision to halt buying, they are one of the biggest hedge funds shorting both AMC and GME stock.
Hedge funds should not have this much power.
Clearing houses should be neutral and only handle transactions. Their job should be to report illicit activities to the SEC. The power hedge funds have must be distributed amongst branches so that they oversee each other and ensure no one branch is too powerful.
What’s causing failure to delivers in AMC?
I strongly doubt retail investors lack the spending power to meet their number of share goals. What’s causing AMC failure to delivers has more to do with the processing of synthetic shares and lack of regulation.
What we’re seeing here is:
Clearing houses cannot process the orders due to shorts and hedge funds not having possession of those assets.
An insane amount of naked shares (synthetics) are being used to drive AMC’s stock price down.
You would think some sort of agency would be created to oversee this manipulation right? I’ll get to that shortly.
What is naked short selling?
Naked short selling is the process of shorting a stock without first borrowing the asset from someone else or ensuring that it’s available to borrow.
In other words, it’s fairy dust. Non existent, not real. Straight manipulation.
Is naked shorting illegal?
Naked shorting is considered to be illegal though firms who have used this technique to bankrupt businesses have never seen accountability due to succeeding in doing so. In other words, they’ve been able to wash their hands once a businesses has been taken off the grid.
However, AMC is no longer on the brink of bankruptcy. AMC is no longer going extinct. Naked shorting this company is not going to make its retail investors disappear and it’s certainly not going to stop Adam Aron, CEO and President of AMC Entertainment from moving the business forward.
I’m confident hedge funds naked shorting AMC are certain to face consequences this time around. We’re not leaving.
The 2008 crisis
2008 is when we saw a massive surge of failure to delivers. This is because hedge funds sought out businesses who were on the brink of collapsing to make some dirty money from.
The use of naked shorting allowed failure to delivers to rise, ultimately bankrupting businesses. People lost their jobs and families faced real distress and turmoil. The parties who participated in these illegal and unethical strategies faced no consequences and boasted their ‘victory’ publicly.
Where was the SEC? The SEC has the power to stop fraud and monitor whether institutions have adequate capital relative to their trading positions as well as the proper risk management systems that could have prevented this catastrophic loss for millions of Americans.
Bare with me. I’m going to let you know exactly who the SEC is, or at least who they portray to be.
AMC’s millions of fail to delivers
The community of retail investors have just recently pulled up this data from the SEC ‘fails-to-deliver’ data.
AMC Entertainment saw over 7.5 million failure to delivers with almost 3.1 million occurring on the 13th and 14th of April, 2021.
The parties behind these purposeful failure to delivers need to be held accountable.
What can retail investors do?
Retail investors should continue to educate one another on this very important matter. The community as a whole is not only revealing the manipulation that occurs in the stock market, but uncovering the malicious intentions hedge funds have towards AMC Entertainment.
The SEC must put a stop to naked short selling at once
The U.S. Securities and Exchange Commission is an independent agency of the United States federal government that was created to protect investors as well as the national bank after the market crash in 1930.
Lobbying – in politics, lobbying is the act of lawfully attempting to influence the actions, policies, or decisions of government officials, most often legislators or members of regulatory agencies.
So why isn’t the SEC doing anything about the illicit activity of naked short selling in the market? More specifically with what’s occurring with AMC and GameStop right now?
If you could say one thing to the SEC
If the SEC sees this article and you had a chance to get your voice heard, what’s one thing you would say to the SEC?
Leave it in the comments section below and make sure you’re heard.
Words of certainty AMC
Unapplied knowledge is wasted knowledge so be sure to spread this message with the community. We as a whole are uncovering something massive. And yes, I truly believe we can make a change here.
FUD should officially be off the table. We have all the data and certainty we need to see this through. Not only are retail investors going to profit from a short squeeze, but justice will be served for the financial crisis of 2008 and the current attacks on AMC and GameStop.
I also want to say thank you to the apes who are keeping everyone informed and to those of you who continuously take the time to do the research. Only by sticking together will the community see massive change. Stay positive.
Leave your thoughts below.