Tag: Gary Gensler (Page 2 of 8)

SEC to Enforce New Disclosure Rules Later This Year

Market News Daily - SEC to Enforce New Disclosure Rules Later This Year.
Market News Daily – SEC to Enforce New Disclosure Rules Later This Year.

The Securities and Exchange Commission (SEC) will enforce new disclosure rules later this year that will increase “transparency and integrity” of corporate stock repurchasing, according to SEC Chairman Gary Gensler.

The newly adopted SEC rules will compel companies to disclose far more information about stock buybacks than they ever have before.

Regulations will start applying to publicly traded companies in the fourth quarter of this year, CNBC reports.

The new disclosure rules will allow investors “to better assess issuer buyback programs,” SEC Chairman Gary Gensler said.

The Chairman also noted the soaring rate at which U.S. corporate buybacks have grown in recent years, from a total of $950 billion worth in 2021, to more than $1.25 trillion worth last year.

These new disclosure rules will begin to apply when U.S. corporations report earnings for the fourth quarter of 2023, and to foreign issuers on a slightly longer timeline.

Public companies will need to disclose a daily log of repurchase activity, a description of the rationale behind each buyback, whether directors or officers of the company bought or sold shares within four days of the buyback, and other trading details.

Approved by a commission vote of 3-2 on Wednesday, the new rules mark the end of a yearslong battle over how much information the public and shareholders have a right to know about the increasingly common practice of companies repurchasing their own shares.

The commission said its final decision was influenced by concerns raised in public comments.

Investors Argue Stock Buyback Combats Shorting

Market News Daily - SEC to Enforce New Disclosure Rules Later This Year.
Market News Daily – SEC to Enforce New Disclosure Rules Later This Year.

Some investors argue that stock buyback actually combats heavy shorting in the market.

With a buyback, companies can increase earnings per share and increase the stock’s potential upside for shareholders who want to remain owners.

Stock buybacks are also a more tax-efficient way to return the earnings of the business to shareholders.

Warren Buffett has commented frequently on the merits of share repurchases over the years and has called their disciplined use the surest way for a company to use its cash intelligently.

“Stock buybacks have grown substantially in recent years and increasingly they are used to enrich executives instead of re-investing capital to advance a company’s long-term productivity, profitability, and employee welfare,” said Stephen Hall, legal director at the nonprofit Better Markets.

“This final rule will certainly increase the quantity, quality, and timeliness of reporting on these controversial transactions.”

But industry advocates called the new rules onerous and unfair, and accused the SEC of trying to deter companies from repurchasing their own shares.

Retail investors say the SEC should focus more on the naked shorting problem in the markets.

The banking sector has even begun to raise concerns about manipulative trading in bank stocks.

Bankers and Retail Investors Urge the SEC to Tackle Manipulative Short Selling Practices

Bankers are urging the SEC for an emergency ban on short selling.

Last week, bankers began to raise concerns of manipulative trading, particularly into abusive short selling.

Reuters reported that the White House had vowed to monitor the possibility of illegal short selling as shares in the banking sector plunged.

Blockchain Daily says industry experts, such as analysts at JPMorgan, the financial giant that recently acquired First Republic Bank from government receivership, have anticipated that Washington will be compelled to implement further measures.

One such measure being considered is the imposition of an emergency ban on short-selling, a practice utilized to speculate on declining share prices of banks.

But it seems like the SEC has its focus and efforts in less detrimental issues.

The increased short-selling activity has triggered some calls for a temporary ban, but an SEC official told Reuters on Wednesday the agency was “not currently contemplating” such a move.

Do you think these new disclosure rules will benefit retail investors?

Or is this more lip service from regulators to demonstrate some sort of action in the markets?

Leave your thoughts below.

Related: Mullen Announces New Illegal Shorting Investigation

Market News Published Daily

Market News Today - SEC to Enforce New Disclosure Rules Later This Year.
Market News Today – SEC to Enforce New Disclosure Rules Later This Year.

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35,000 Retail Investors Sign SEC Letter for New Rules

Market News Daily - 35,000 Retail Investors Sign SEC Letter for New Rules.
Market News Daily – 35,000 Retail Investors Sign SEC Letter for New Rules.

Nearly 35,000 retail investors have signed a letter to the SEC published by We The Investors requesting improvements to market rules and new disclosures.

The letter is introducing new disclosure in lending transparency, margin transparency, netting transparency, FTD transparency, as well as disclosure of registration, and many other rules that will help level the playing field for retail investors.

We The Investors has given retail investors an organized, professional, and formal stance in the finance world.

For once, Wall Street vs Main Street are going head-to-head like never seen before.

Retail investors have become highly knowledgeable about the stock market and how regulation is primarily tailored to better suit institutional investors over the average investor.

This decade is going to bring forth some of the biggest changes in the stock market.

Here are the latest news and updates.

We The Investors SEC Letter

Market News Daily - 35,000 Retail Investors Sign SEC Letter for New Rules.
Market News Daily – 35,000 Retail Investors Sign SEC Letter for New Rules.

“Dear Chairman Gensler,

Since the launch of We The Investors in March, 2022, we have had over 100,000 retail investors sign up to support our various efforts to advocate for five basic principles in market reform: transparency, simplicity and fairness, choice and control, best execution and better settlement and clearing.

Our grassroots advocacy campaign has a simple goal – to empower retail investors to represent themselves while advocating for market structure reforms.

Today we write to you to continue this campaign and urge you to address one of the most opaque areas of market structure – the settlement and clearing systems that have problematic disclosures around stock lending, failures to deliver (“FTDs”), margin and netting, and the practices that enable business models predicated on FTDs.

When you discussed naked shorting and FTDs on the Jon Stewart podcast, you agreed that “we need more transparency and better transparency about a really core part of the market [] when somebody sells securities they don’t own.”

The Commission has focused with its recent proposals (10c-1 and 13f-2) on disclosure of stock borrowing and short selling by investment managers, and we applaud and support those efforts. 

However, we do not believe that these efforts go far enough, and we would like the SEC to re-examine the disclosures and mechanisms in place in this “core part of the market.”

As such, we write to you requesting the following improvements to market rules and disclosures – a roadmap for change.

Retail Investors Propose New Disclosures from SEC

Market News Daily - 35,000 Retail Investors Sign SEC Letter for New Rules.
Market News Daily – 35,000 Retail Investors Sign SEC Letter for New Rules.

Nearly 35,000 retail investors have signed an SEC letter proposing new disclosures and rules for market transparency.

Outlined below are the disclosures and rules detailed in the letter.

“First, we believe that there is a comprehensive set of new disclosures that could shed light into this opaque portion of the market:

  • Lending Transparency: Retail investors have the right to know whether their securities have been lent out, and how much revenue the broker has received.
  • Margin Transparency: Investors need visibility into the estimated margin per security for Clearing Brokers.
  • Netting Transparency: Investors need disclosure of gross versus net notional or share count per security to help understand trading dynamics and discern the level of real investment versus intraday trading activity.
  • FTD Transparency: Failure To Deliver disclosures need to be updated more often, and include more information, including how and when FTDs are remediated, what type of counterparty is responsible for the failure (bucketed into clearing broker, exempt market maker or custodian), and how long the FTDs remained open.
  • Disclosure of Registration: Public companies should be required to disclose directly registered shareholder numbers on all 10-Q and 10-K reports.

Next, we believe that retail brokers must be obligated to give their investors more control over the lending of their securities and how those securities are registered:

  • NOBO/OBO designations: Brokers should explain to investors the choices they may make as it relates to transparency of share ownership, where shares are recorded in a brokerage account in beneficial format. The default options should always be NOBO (non-objecting beneficial owner). Shielding holdings from investee companies through the use of OBO (objecting beneficial owner) designations should be a right that an investor should opt in to. Brokers should provide the investor’s email address as part of any disclosure of NOBO holdings.
  • Control of Stock Lending: Investors have the right to decide whether their securities can be lent out to short sellers. Disclosures around account types and the implications therein need to be made simpler, easier to understand, and more explicit in the account creation process.
  • Control of Registration: Investors should be able to choose whether their shares are to be held in a brokerage account or in direct registration form in the investor’s own name on the company’s share register. Brokers should be required to support the direct registration of shares in an investor’s name.
  • Investor Communications and Proxy Voting: Investors should be able to receive their communication directly from the company they invest in and not have their shareholding pooled with other clients of the broker, whose interests may not be aligned. Investors should be able to vote directly with the company, and have their voice heard at general or extraordinary shareholder meetings. Their votes should be directly confirmed by the company or its agent.

Retail Investors Demand Change in the Market

“Finally, we urge you to reform the settlement and clearing system to end problematic practices that can distort price discovery and supply/demand dynamics:

  • End the “Market Maker” Exemption to Reg SHO: As SEC enforcement has shown, so-called “market makers” have abused this exemption to Reg SHO that allows them to sell shares short without a locate. Markets would better reflect actual supply and demand dynamics if all trading firms had to locate shares before selling short. The SEC should further set a goal of a more robust, transparent, electronic locate workflow and standard.
  • End “Fails as a Business Model”: Too many firms rely on failing to deliver on their short sales to prop up or sustain their business models. This practice must be ended, either by enforcing mandatory buy-ins or through interest charges on failures. This would entail a more comprehensive overhaul of the US settlement system, and one potentially modeled on the European Settlement Discipline Regime.

We urge you to take these actions to improve transparency in markets, shine a light on the most opaque part of our market’s plumbing, to ensure that prices in the market reflect actual supply and demand, and to guarantee that brokers give investors the appropriate level of control and disclosure so they can make the decisions appropriate to their unique, individual circumstances.

We would be happy to meet with you and discuss any of these proposals in more detail.”

You can sign the official letter from We The Investors on their official website.

If you would like to receive more updates and news for the retail community like this, join the newsletter below.

Market News Published Daily

Market News Today - 35,000 Retail Investors Sign SEC Letter for New Rules.
Market News Today – 35,000 Retail Investors Sign SEC Letter for New Rules.

For stock market, business news and updates, join the newsletter to receive weekly market news and notifications straight to your inbox.

Franknez.com is the media site that keeps retail investors informed.

You can also follow Frank Nez on TwitterInstagramFacebook, or LinkedIn for daily posts.


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You can now read exclusive FrankNez articles for only $1/mo.

  • Gain access to EXCLUSIVE FrankNez articles you won’t find here.
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Congressman Introduces Legislation to Fire Gary Gensler

Market News Daily - Congressman Introduces Legislation to Fire Gary Gensler.
Market News Daily – Congressman Introduces Legislation to Fire Gary Gensler.

Congressman Warren Davidson, Ohio’s 8th District in Congress, says he is introducing legislation that aims to fire SEC Chairman Gary Gensler.

The Securities and Exchange Commission (SEC) Chairman will be replaced by an Executive Director role and former chairs of the SEC will be ineligible, per the Congressman.

SEC Chairman Gary Gensler has been under fire by retail investors ever since he joined the commission in 2021.

For example, dark pool trading has risen under Gensler’s watch, leaving the average investor vulnerable in today’s market.

In 2022, retail investors petitioned to fire the SEC Chairman due to the SEC’s failure to enforce regulation that would level the playing field between retail investors and institutional investors.

The retail community has argued that hedge funds and market makers have too much power and take advantage of investors through Payment for Order Flow (PFOF), dark pool trading, and suppress the market through illegal naked short selling.

As of 2023, FTDs and dark pool volume continue to increase with no sight of relief for the average investor.

“To correct a long series of abuses, I am introducing legislation that removes the Chairman of the Securities and Exchange Commission and replaces the role with an Executive Director that reports to the Board (where authority resides). Former Chairs of the SEC are ineligible,” said Congressman Warren Davidson on Twitter.

Retail Says Hester Also Has to Go

Congressman Warren Davidson’s introduction to a legislation that would replace Gary Gensler was sparked from a comment SEC Commissioner Hester Peirce made – opposing views with the SEC Chairman on crypto.

However, many retail investors say Hester Peirce has to go too.

Hester Peirce is known for having ties with a lobbyist group of anti-regulators and for voting against the Short Sale Transparency Act in 2021.

Charles Payne asked The Commissioner in an interview what she thought about the injustices in the MMTLP scandal.

But Hester danced around the questions that affected investors only want simple answers too.

“You sound like a hedge fund brochure”, Charles Payne told Peirce.

And the SEC aren’t the only regulators under fire either – retail investors created a petition earlier this month calling out for the resignation of FINRA CEO Robert Cook.

FINRA Under Heat by MMTLP Community

Transcripts were released revealing FINRA knew about the manipulation of MMTLP stock at least a year in advance before the U3 halt and delisting of the ticker in December of last year.

Investors who held shares of MMTLP stock on the record date of December 12 would receive a preferred dividend of Next Bridge Hydrocarbon on Wednesday, December the 14th.

However, MMTLP stock stopped trading on Thursday, December 8 after FINRA delisted the security without notice or warning.

FINRA responded to investors affected by the aftermath in March, but the retail community are now calling for the resignation of FINRA CEO Robert Cook.

Nearly 7,000 investors have signed the petition at the time of this publication.

What do you think of Congressman Warren Davidson introducing a legislation to replace SEC Chairman Gary Gensler?

Investors online say both Gensler and Peirce have to go.

Would you agree?

Leave your thoughts below.

Market News Published Daily

Market News Today - Congressman Introduces Legislation to Fire Gary Gensler.
Market News Today – Congressman Introduces Legislation to Fire Gary Gensler.

For stock market, business news and updates, join the newsletter to receive weekly market news and notifications straight to your inbox.

Franknez.com is the media site that keeps retail investors informed.

You can also follow Frank Nez on TwitterInstagramFacebook, or LinkedIn for daily posts.


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You can now read exclusive FrankNez articles for only $1/mo.

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95% of Retail Orders Don’t Go Through Lit Exchange

Gary Gensler says 90%-95% of retail orders don't go through lit exchange
Gary Gensler says 90%-95% of retail orders don’t go through lit exchange.

Gary Gensler announced exclusively on Bloomberg (see below) that 90-95% of retail orders don’t go through the lit exchange.

The SEC Commissioner says these orders are rerouted to dark pools rather than the NYSE.

It was only a year after the ‘meme stock’ frenzy that the community receives this official news.

The ‘ape’ community has been labeled as conspiracy theorists but have proven to be correct time and time again on the market injustices that have been occurring for decades.

Here’s the latest market news.

Franknez.com

Welcome to Franknez.com – Gary Gensler has confirmed the market manipulation that the ‘ape’ community has been exposing all for years now.

This is big for the retail community because for some time, ‘smart money’ was referring to investors as conspiracy theorists.

And can the SEC suspend dark pool trading?

Let’s dive right into it.

Gary Gensler on Dark Pools via Bloomberg

Gary Gensler confirms 90%-95% or retail orders are processed in dark pools

SEC Chairman and Commissioner Gary Gensler says payment for order flow is partly the reason why orders aren’t processed on the lit exchange.

He says retail orders go to wholesalers on an order-by-order competition.

Citadel’s Ken Griffin has praised PFOF stating it’s good for retail investors.

However, PFOF allows market makers to process retails orders in the ‘dark markets’, or dark pools.

This means retail buying volume is out of sync with AMC’s actual share price.

AMC’s share price is synthetic, it only reflects a small portion of buying volume.

Market Makers Have Been Stealing from Retail Investors

Market makers have been stealing from retail investors with absolutely no consequence from regulators.

Now that the cat is out of the hat, what is going to be done about it?

How does one account for all the orders that have been derailed from the lit exchange market and fix the share price to reflect the correct amount?

Banning PFOF is one thing but what about the money that has been masked by dark pools?

Will these financial institutions be held accountable for financial treason?

The integrity of the stock market has been tainted for far too long, now it’s time to take action.

Will PFOF get banned in the U.S?

Will PFOF get banned in the United States?
Will PFOF get banned in the United States?

According to Gary Gensler, PFOF is banned in the UK, Canada, Australia, and in Europe.

However, because the U.S has a very strong capitalist economy, it could prove to be difficult.

Gensler says, “I think it’s natural that we look to say, how do we drive great competition and efficiency in this market, and use the tools that congress has given us.”

Here the SEC Chairman is saying their solution is to find someone who can compete with these market makers rather than banning PFOF in general.

We’ve seen these efforts through the IEX exchange D-Limit order.

IEX is a lit exchange that reflects much more accurate share prices and eliminates the predatorial strategies used by market makers and hedge funds.

These strategies include PFOF and high frequency trading.

Recently, Citadel, Charles Schwab, and the NYSE have teamed up to destroy new SEC Proposals.

However, ‘We The Investors’ has challenged Wall Street by submitting more than 1,300 letters supporting the SEC’s proposals.

Retail Wants Orders Processed Through the Lit Exchange

The SEC is supposed to be protecting retail investors from nefarious market practices.

Therefore, it is the SEC’s duty to find a solution and locate the money that retail is missing.

Retail wants orders processed through the lit exchange.

Market makers do not have the consent to move retail money through dark pools or other foreign markets.

#MarketMakersDontHaveConsent

Can the SEC Suspend Dark Pools?

Yes, the U.S. Securities and Exchange Commission (SEC) has the authority to suspend dark pools if it believes that they are violating securities laws or posing a risk to investors or the integrity of the markets.

Dark pools are private trading venues that allow institutional investors to buy and sell large blocks of securities without revealing their trading intentions to the public.

While dark pools can provide benefits such as reducing market impact and improving execution quality, they can also raise concerns about transparency and fairness.

The SEC has taken action in the past to regulate dark pools and address potential abuses.

For example, in 2014, the SEC brought charges against a major dark pool operator for making false statements to investors about the operation of its trading platform, leading to a $12 million settlement.

In 2020, the SEC proposed rules that would increase transparency and disclosure requirements for dark pools.

If the SEC determines that a dark pool is engaged in unlawful activities or poses a risk to investors or the markets, it can suspend the dark pool’s operations, require it to take remedial actions, or take other enforcement actions as appropriate.

Market News Published Daily

Market News Today - Can the SEC suspend dark pools?
Market News Today – Can the SEC suspend dark pools?

For stock market, business news and updates, join the newsletter to receive weekly market news and notifications straight to your inbox.

Franknez.com is the media site that keeps retail investors informed.

You can also follow Frank Nez on TwitterInstagramFacebook, or LinkedIn for daily posts.


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You can now read exclusive FrankNez articles 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.
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‘We The Investors’ Challenges Wall Street on New SEC Proposals

Market News Today - 'We The Investors' Challenges Wall Street on New SEC Proposals
Market News Today – ‘We The Investors’ Challenges Wall Street on New SEC Proposals

‘We The Investors’ is taking Wall Street head on which means retail investors from around the world are now being represented in a way like never before for the first time in history.

More than 1,300 letters have been submitted to the SEC supporting rules proposed in December that represent the biggest changes to equities trading in nearly two decades, according to Reuters.

The collective of retail investors have joined ‘We The Investors’ led by Dave Lauer in efforts to combat Wall Street as a legitimate organization that sprouted from the events of the ‘meme stock’ frenzy in 2021.

Halts in AMC, GameStop, and other stocks during at the time angered many investors which led to the exposure of crime and market injustices on social media.

Retail investors have been pushing for market transparency ever since.

We The Investors has held two online meetings since December with SEC Chair Gary Gensler, who took questions directly from retail investors on the proposals, which include requiring most retail stock orders to be sent to auctions to boost competition.

Other proposed rules call for a new standard for brokers to demonstrate they’ve gotten the best execution for clients on transactions, as well as lower trading increments and access fees on exchanges, and stronger disclosure around retail order executions.

But Wall Street, including Ken Griffin’s Citadel is pushing back.

Related: “The Game is Rigged” Says Ex-Citadel Data Scientist

Wall Street, Citadel, Face Organized Retail Investors

The New York Stock Exchange teamed up with retail broker Charles Schwab Corp and market maker Citadel Securities on Monday to ask the U.S. Securities and Exchange Commission to withdraw two recently proposed rules aimed at revamping how stocks trade.

The move represents a coordinated industry push back against what are potentially the most impactful proposals in the SEC’s biggest attempt to reform stock market rules in nearly 20 years.

“We are deeply concerned that the Commission has simultaneously issued multiple far-reaching proposals that would dramatically overhaul current market structure without adequately assessing the cumulative impact on the market or the potential for unintended consequences,” the companies said in an SEC comment letter.

The SEC in December proposed requiring nearly all retail stock orders to be sent to auctions, as well as a new standard for brokers to show they get the best possible executions for their clients’ orders.

Market News Today – ‘We The Investors’ Challenges Wall Street on New SEC Proposals

The SEC also proposed lower trading increments and access fees on exchanges, and more robust retail order execution disclosures.

And now Citadel, Charles Schwab, and the New York Stock Exchange are fighting against these proposals that will help level the playing field for retail investors.

Payment for order flow has annihilated competition and reserved market maker Citadel Securities the right to buy retail orders from brokers such as Robinhood and TD Ameritrade.

During an interview with SEC Chairman Gary Gensler, the Chairman tells ‘We The Investors‘ that he believes the SEC should have the ‘Best Execution Rule‘, not the self-regulatory organization, FINRA.

Market News Published Daily

Market News Today - 'We The Investors' Challenges Wall Street on New SEC Proposals
Market News Today – ‘We The Investors’ Challenges Wall Street on New SEC Proposals

For stock market, business news and updates, join the newsletter to receive weekly market news and notifications straight to your inbox.

Franknez.com is the media site that keeps retail investors informed.

You can also follow Frank Nez on TwitterInstagramFacebook, or LinkedIn for daily posts.


Franknez.com

You can now read exclusive FrankNez articles 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.

My New Book is Out Now! Use Code: THENEZ


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