Tag: Margin Call (Page 1 of 2)

Are Institutions Preparing to Close Short Positions in AMC?

how soon will institutions close short positions in AMC stock?
How soon will institutions close short positions in AMC stock?

Retail investors have been waiting for big institutions to close their short positions in AMC for over a year now.

Many short positions in AMC Entertainment stock still remained open after January’s and May’s runup last year.

This year’s bear market has dropped stock prices back to all-time lows.

Will this provide institutions with incentive to close short positions in AMC now?

Let’s discuss it below.

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AMC drops to all-time lows again

Are institutions preparing to close short positions in AMC stock?
Are institutions preparing to close short positions in AMC stock?

The entire market is on a free-fall.

AMC Entertainment stock managed to fall below $13 on Monday despite heavy buying volume.

The off-exchange trading for AMC is currently around 62.26% according to Fintel, and shorts have borrowed an additional 1M shares to short the stock according to Stonk-O-Tracker.

These predatorial strategies have retail investors pinned and losing money on their investment.

The economy’s health isn’t helping much either, but further fueling the market’s stress.

Interest rates are rising, inflation is at an all-time high, and the U.S is battling several issues outside the country with Russia and Ukraine, and at home.

Today’s economy has the entire market beat.

And AMC Entertainment is no exception the free-fall despite the company’s continuous progress.

AMC has become a trading ground

Traders and institutions are trading AMC at all times.

At some point, positions will have to get closed.

DTCC B16845-22 raised margin requirements by 25% for stock trading above $10 per share.

If AMC stock drops below $10 per share, then margin requirements will be raised to 30%.

This is rather significant because it requires institutions shorting AMC stock to carry more collateral.

Unfortunately for the rest of the market, institutions will continue to create massive selloffs just to keep up with these margin requirements.

But it gets worse for them because the lower AMC drops, the more collateral will be required of them.

Financial institutions are being stretched beyond their means and it’s not going to end well for them.

We’ve already seen hedge funds fall – and we can expect this trend to continue.

Related: Hedge Fund Melvin Capital is Shutting Down in June

Could institutions be preparing to close short positions?

Institutions will eventually begin to hedge on the upside (long).

For this to happen, they will need to identify the market’s bottom.

Economists believe there is still quite aways to go before the market begins bottoming out.

Others such as Forbes believes the stock market is finishing this crater of a selloff.

With this in mind, institutions always strategize when it comes to market conditions.

It is very possible AMC short sellers could begin to close their positions as the markets begin to bottom out.

When this will occur is unknown.

No one has been able to perfectly time the market; however, there are always signals in the market that allow investors to foresee specific trends.

A reversal is imminent

Despite where the bottom lies, investors holding AMC stock should know that a reversal is imminent.

A reversal is a change in the price of an asset which can occur to the upside or downside – depending on a securities’ current trendline.

For AMC, a reversal would push the stock up.

Not only is a reversal imminent for AMC stock, but for the entire market as well.

Stocks can’t keep going down forever, at some point they must go up again.

I have a feeling this is going to be one of the biggest reversals in history.

I’m interested to learn what you think.

Leave a comment down below.

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Related: Is AMC Stock Due to Go Up Next Week?

DTCC B16845-22: Are Margin Calls on The Way?

DTCC B16845-22
DTCC B16845-22 | Market News

On April 29, the DTCC released B16845-22 under the ‘settlement’ category.

The subject reads: changes to DTC collateral haircuts.

The notice is directed to all market participants and I’m going to touch topic on what this means down below.

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DTCC B16845-22 margin calls

DTCC B16845-22 says that affected participants may be margin called if they have reduced their collateral.

The reason being is that equities with reduced collateral value may significantly drop in price.

Stock prices over $10 will see an increase in margin requirements by 25%.

For prices between $7.50-$9.99 per share, margin requirements will increase by 30%.

There will be a 50% margin increase on stock prices between $5.00-$7.49, and a 100% increase on stocks with prices below $5 per share.

So, will DTCC B16845-22 affect AMC stock or GME stock?

Yes, since AMC is trading around $15 per share and GameStop is trading above $114.

Both these stocks will raise margin requirements by 25%, making it less accessible for short sellers to short the stocks.

However, as long as short sellers are able to meet margin demands, the heavy shorting will continue.

Why was this rule implemented?

The stock market has been facing massive selloffs as well as heavy short selling.

It’s possible DTCC B16845-22 was implemented as a way to cool off short selling, allowing the markets to catch a breather.

Some of the top CEOs in America have stated that they don’t expect this bear market to last long.

I don’t think anyone wants to see the U.S. go into another recession very soon.

While short sellers might have been able to profit from this market’s downside, I think we’re going to see more upside very soon.

What do you think?

Join the discussion in the comment section below?

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Citadel Faces Potential Default on Russian Tech Company

Citadel Default on Russian bonds
Market News: Citadel faces potential default on Russian bonds

Citadel is facing potential default on convertible bonds from Russia’s Yandex NV.

Yandex NV is an internet and technology company that provides an internet search engine in Russia and other international markets.

Tigran Khudaverdyan has stepped down from his roles as Executive Director and Deputy CEO at Yandex.

Citadel could default on convertible bonds worth billions.

Here’s how Russia is affecting the hedge fund.

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(Bloomberg) Tech company suspension could lead to Citadel default in Russian bonds

Yandex Russian Bonds

The Russian tech company’s U.S. shares have been suspended for more than five days, enabling bondholders to ask for repayment in full. 

Citadel just happens to be one of those bondholders who wants their money back.

The firm said it does not have the money to redeem the $1.25 billion bonds, which are meant to be exchangeable for common stock.

Yandex is one of few Russian companies with convertible bonds issued from foreign financial institutions.

And because restrictions complicate the transfer of money out of Russia, access to capital markets to raise funds any time soon seems highly unlikely.

This significantly increases the odds of Citadel having to default on their Russian bonds.

If Citadel defaults on these bonds, the hedge fund would have accrued additional losses its first quarter of 2022.

Representatives from Citadel declined to comment on the matter, according to Bloomberg.

JP Morgan Chase & Co. turns down advisory role

JP Morgan turns down advisory role
Citadel and bondholders seek advisory – JP Morgan declines

Bondholders have the right to ask to be repaid in full if the company’s shares stop trading for over five days.

However, Yandex only has $615 million in cash with only 60% of that money located outside of Russia.

This means Yandex only has approximately $369 million in liquidity.

That’s a massive difference from the $1.25 billion they owe to Citadel and other institutions affected.

Because sanctions are preventing money from leaving Russia, it’s impossible Citadel will obtain cash from the country.

Bondholders are struggling to find advisors to navigate the process.

JPMorgan Chase & Co. turned down an advisory role on the situation after participating in initial discussions.

The bank simply does not want to get involved.

Will Citadel default on these bonds?

The chances are very likely.

Margin call tension rises

Credit Suisse has been margin calling clients exposed to Russia.

In the coal industry, Peabody received a $534 million margin call.

We’ve recently seen Citadel pull back $2 billion from Gabe Plotkin’s Melvin Capital as they too have been experiencing losses.

Even as Citadel faces default on Russian bonds, the hedge fund has sent signals of distress in the past few months.

Events include from receiving a $1.2 billion lifeline from Paradigm and Sequoia to restricting customers from cashing out.

The Russia-Ukraine conflict is creating losses even for short sellers during a time they would usually profit.

It seems it’s only a matter of time before hedge funds start receiving margin calls too.

But will big banks be able to bail everyone out?

What do you think?

Leave a comment below.

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Read: Ukraine: These famous brands have pulled out from Russia


Chinese Tycoon Gets Bailed Out From $8 Billion Margin Call

Chinese Tycoon gets bailed out from $8 billion margin call
JP Morgan bails out Chinese tycoon Xiang Guangda after receiving an $8 billion margin call for sorting Nickel – Long Metal Exchange halts continue

Chinese tycoon Xiang Guangda has been bailed out by JP Morgan after receiving a whopping $8 billion margin call.

The margin call came about as he was shorting Nickel.

The commodity short squeezed leaving the Chinese tycoon with an $8 billion margin call.

Xiang told banks he wanted to keep shorting Nickel and shrugged off suggestions to reduce his short positions, Bloomberg.

Should this even be allowed?

Let’s discuss it.

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Chinese tycoon gets away with $8 billion margin call

London Metal Exchange
London Metal Exchange

The tycoon whose big short bet on nickel helped trigger one of the most dramatic price spikes in history has told his banks and brokers that he doesn’t intend to reduce his position, according to Bloomberg.

The London Metal Exchange halted trading in nickel after prices spiked as much as 250% in two days.

 Xiang has told the roughly 10 banks that he still believes prices will fall and that he would like to keep his short position.

The LME acknowledged that short sellers weren’t going to voluntarily reduce their short positions.

It said there were “considerable differences in view on the appropriate price.”

Apparently big net worth short sellers make the rules.

They Chinese Tycoon secured a deal with JP Morgan and China Construction Bank that would allow it to avoid defaulting on its $8 billion margin call.

LME halts Nickel trades

The LME cancelled $4 billion in transactions as Nickel prices began to surge.

The exchange said: “Nickel will be deemed a disrupted session and all agreed trades during this session will be null and void.”

In other words, they took away the ‘buy’ button and are allowing short sellers to either close their positions or profit on the way down.

Dave Lauer says the exchange is ruining their credibility by protecting very wealthy and powerful people/firms.

“You can’t run a market like this, busting trades at someone’s whim.”

The halts are similar to those that occurred last year during the ‘meme stock’ frenzy when Robinhood froze the purchasing of GameStop, AMC, and other heavily shorted stock.

At some point, the people will cause an uproar.

What are your thoughts on the matter?

Big banks are beginning to bail out wealthy people and firms.

What can be done about it and what should be done about it?

The Chinese tycoon is only one example, but what will happen when heavily shorted stock begin to squeeze again?

Leave your thoughts in the comment section below and share this article to raise awareness to the injustices in the markets.

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Peabody Receives a $534 Million Margin Call: Goldman Steps In

Peabody Margin Call
Peabody Margin Call – Global margin calls will happen in every corner of the financial sector

Leading global pure-play and Fortune 500 company Peabody received a $534 million margin call.

The Australian benchmark coal price is up more than 400% in the past 12 months, hitting $425.

Peabody was not prepared and got slammed with a $534 million margin call.

The sum is more than half the cash the company had at the end of December 2021.

Margin calls are beginning to happen left and right and we’re going to discuss it.

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Welcome to Franknez.com – if you haven’t already joined the newsletter be sure to do that below. I’m publishing daily market news to keep you informed.

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Margin calls in the coming weeks

The Russian-Ukraine conflict is affecting global markets sparking margin calls in every corner of the finance sector.

Russia’s war in Ukraine has further fueled a rally in coal driven by a squeeze on global energy supplies.

Chinese tycoon Xiang Guangda is currently facing an $8 billion margin call after Nickel prices skyrocketed to $100,000 per ton.

Nickel surges to $100,000 per ton

Xiang Guangda tells banks he has no intention in reducing his positions.

The short seller is requiring a coordinated bank bailout including the participation of JP Morgan.

The London Metal Exchange halted trading in nickel on Tuesday morning after prices spiked as much as 250% in two days, driven by brokers rushing to close out short positions after holders of bearish bets struggled to make margin calls.

Credit Suisse News: Margin call tension rises

Credit Suisse margin call

The Swiss bank Credit Suisse is also imposing margin calls on investors exposed to Russia.

The invasion of Ukraine has left wealthy individuals invested in Russian assets with frozen accounts and demands for more collateral.

Tension really began to pick up when Russia was removed from SWIFT.

Banks in the United States are losing cash quick.

Citigroup disclosed in its annual report that it has nearly $10 billion in exposures to Russian counterparties, including loans, reverse repo agreements and cash deposits. 

Morgan Stanley’s next gen emerging markets fund (MFMIX) has also been exposed to Russia with nearly $16.6 million frozen due to Russian sanctions.

Schwab’s fundamental emerging markets large company index ETF (FNDE) has also been affected with 12.7% being exposed to the Russian stock market.

Peabody receives a 10% loan from Goldman

Peabody receives a 10% loan from Goldman Sachs
Goldman Sachs steps in with 10% loan – Peabody Margin Call

Peabody shares plunged 17% after announcing the margin call, taking a chunk out of the gains they had made in recent months as the coal market boomed.

Margin calls could increase if the coal market moves higher.

Senior VP for coal markets at Rystad Energy Steve Hulton says prices could reach $500 per ton.

Peabody arranged a $150 million credit line with Goldman Sachs although the bank announced in 2019 that it would phase out financing for coal.

Peabody’s margin call is only a glimpse of what’s coming to various institutions in the markets worldwide.

And in the states, retail investors are waiting for hedge funds’ number to be called.

Will banks be able to inject liquidity into hedge funds?

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As banks and hedge funds’ assets continue to lose their value, will banks be able to inject liquidity into hedge funds when they need it?

Leave a comment below with your thoughts.

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Regulators Are Taking Morgan Stanley and Hedge Funds to Court

Regulators take Morgan Stanley and hedge funds to court - Subpoenas
Regulators take Morgan Stanley and hedge funds to court – Subpoenas

Regulators are taking banks such as Morgan Stanley and multiple hedge funds to court.

Financial institutions have been receiving subpoenas ordering them to court after several investigations, more on that below.

Retail investors have been demanding the SEC and Justice Department take action for decades now.

Will this new wave of retail investors be the ones to spark change in the markets?

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Welcome to Franknez.com – today’s market news is surrounding the crackdown of banks and hedge funds. Be sure to stick around and join the discussion in the comment section of the blog below.

Let’s dive right into it!

Regulators are taking financial institutions to court.

I will be updating this article as new information arises so be sure to join the newsletter to get notified.

Some of the biggest banks and hedge funds are getting dragged to court.

And while not all of the information is known yet, here’s what we do know.

Morgan Stanley & Goldman Sachs get subpoenas

Morgan Stanley and Goldman Sachs get subpoenaed
Morgan Stanley and Goldman Sachs get subpoenaed

Regulators are investigating communications between banks and hedge funds.

Morgan Stanley, based in New York is among the many firms reported to have received subpoenas.

Another bank you might recognize off the top is Goldman Sachs who’s already been known for notoriously manipulating commodities.

Morgan Stanley is one of the banks that funded private family office Archegos.

The bank lost billions of dollars when the private hedge fund defaulted last year.

Now these banks are receiving subpoenas; a court order to come to court.

Subpoenas may be used in both criminal and civil cases but often result in jail time or heavy fines if ignored.

Why are hedge funds and banks going to court?

Regulators are examining whether bankers might have improperly tipped hedge fund clients in advance of large share sales.

The report also says regulators are investigating whether banks also alerted favored clients ahead of public disclosures of trades, and if such information benefited the fund.

The Department of Justice is also investigating the matter.

We’ve seen this type of strategy play out in the past with GameStop and AMC early last year.

Insiders communicated about halting retail trades as they sold off their entire AMC and GameStop positions.

Meanwhile, retail investors were left helpless unable to buy the assets.

Further price surges from ‘meme stocks’ would have resulted in catastrophic losses for hedge funds and banks alike.

These events have yet to receive justice.

BREAKING: Citadel Under Investigation by Department of Justice

What will be the result?

Leave your thoughts below in the comment section of the blog.

I noticed mixed opinions on Twitter.

Some of you say the SEC and DOJ are finally taking action, others say they’re part of the problem too.

Let’s spark a discussion below.

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SR 21-19: The Fed Is About to Impose Massive Margin Calls

SR 21-19 Margin Calls
SR 21-19 Margin Call Requirements

The Fed’s just published a letter under SR 21-19 to supervise and assess the actions that led to the Archegos default by examining financial institutions and their relationships to investment funds.

The Federal Reserve is issuing this guidance to limit risk management.

SR 21-19 is intended for banking organizations with large portfolios and relationships with investment funds, such as hedge funds.

Some of you in the community wanted me to explain what this letter means and so I’m going to be breaking it down for you today.

franknez.com

Welcome to Franknez.com – today’s market news has to do with the Fed’s cracking down on banks and hedge funds. Interesting things are happening at the end of the year, aren’t they?

Let’s get started!

Speaking of interesting things happening.

The ape community has attracted the attention of the SEC, mainstream media, and now the Federal Reserve.

It’s worth noting that progress is progress, no matter how slow or long it takes.

Why is SR 21-19 Significant?

SR 21-19 Margin Calls

This federal piece of document is significant for many reasons.

  1. It highlights lack of transparency in the markets.
  2. The letter acknowledges a relationship amongst financial entities and confirms strategic involvement.
  3. It expresses how overleveraging positions pose a major risk towards meeting debt obligations.
  4. And finally, SR 21-19 touches topic on providing proper margin terms to these institutions.

Reserve banks are being asked to distribute this letter to the supervised organizations in their districts and to appropriate supervisory staff.

The board is continuing to review firms’ weaknesses to take further action.

The Feds are looking for a solution that will mitigate risk and prevent hedge funds from defaulting, as seen with Archegos.

Archegos defaulted on March 26, 2021, causing over $10 billion in losses across several large banks.

Today we’re seeing Citadel has lost billions of dollars this year from shorting AMC stock.

The hedge fund has begun freezing any attempts for its clients to pull their investments out by issuing ultimatums that would make it impossible for the customer to return.

And on top of that, a hefty fee for withdrawing their investments.

New Margin Call Terms Are on The Horizon

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It is unclear what the margin call terms will be for these overleveraged financial institutions.

However, the letter states that they will be ensuring that these institutions receive the appropriate margin requirements.

They will either avoid inflexible and risk-insensitive margin terms or extend close-out periods.

Risk-insensitive meaning appropriately raising the margin requirements dependent upon how overleveraged a financial institution is.

Hedge funds shorting AMC and GME stock have amounted an overwhelming number of borrowed shares to short the stocks.

Yet these stocks have remained leveled due to the strength of retail investors.

The feds are about to impose massive margin requirements on overleveraged hedge funds.

Now, we won’t know how long this process will take.

What we do know is that the federal government isn’t taking hedge funds lightly anymore.

And if the appropriate margin terms are too high for hedge funds to maintain, then they’ll be forced to close short positions.

Getting To the Bottom of Synthetic Shares

AMC Synthetic Shares

Will the feds come across the millions of synthetic shares these overleveraged hedge funds have created?

It will be a massive surprise if they don’t.

See, the feds are requiring their supervisors to receive adequate information to fully understand the risks of the investment funds they are investigating.

This includes positions and counterparty concentrations, or a specific sector in which two financial entities are specifically focused on.

Failing to meet transparency will mean the feds will take action on setting conservative terms between the parties.

Identifying synthetic shares in the market is a rabbit hole the feds themselves will have to go down.

My suggestion is for the community to push the Department of Justice to investigate these synthetics.

Raising awareness to these problems in the market is key to sparking a MOASS.

2022 Is Going to Be an Interesting Year for Hedge Funds

ken griffin meme

Hedge funds face more scrutiny than ever before in history.

They have created system risk and pose a threat to our businesses and economy.

Hedge funds never saw a community of activists fight them for a fair market.

Retail investors caused Archegos to default and Melvin Capital to lose billions of dollars resulting in a life-line from Citadel Securities.

Melvin Capital has stated that they’re out of the game.

However, financial institutions such as Citadel Securities and Bank of America Corp continue to short AMC stock.

With the feds now involved, 2022 is going to be an interesting year for both hedge funds and retail investors.

Leave Your Thoughts Below

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What do you think of the SR 21-19 letter?

Could this federal document be the first step towards the uncovering of synthetics in the market?

Are we closer to margin calls than ever before?

Leave your thoughts below.

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How Soon Will Hedge Funds Get Margin Called? (AMC)

Citadel Margin Call, When will hedge funds get margin called
When will hedge funds get margin called? Citadel Margin Call

Retail investors all want to know. How soon will hedge funds get margin called?

I’m going to be updating this article with new information as it becomes available so be sure to bookmark it.

If you’re investing in AMC or GameStop, this article will prove to be of value to you.

You’ve done an outstanding job. You’ve bought the rips and dips but most importantly, you’ve held on.

Let’s go over the data that is currently available regarding margin calls and hedge funds.

There are some incredible things happening behind the scenes that you need to know.

franknez.com

Welcome to Franknez.com – the blog keeping retail investors informed in stocks, crypto, and market news.

Lets get started!

But first, I want to give a massive thank you to my readers.

A lot of you have just recently started following me and I’m very grateful for your support.

I love seeing the community sharing FrankNez content on social media. It brings me great pleasure to know I’m providing value in your daily lives.

What is a margin call?

I published a piece fully dedicated to what a margin call is in the stock market world some time ago.

In short, a margin call occurs when the value of an investor’s brokerage account falls below the broker’s required amount.

This is when a broker demands that an investor deposits additional money into their account so that it meets the minimum requirement.

A margin call is usually an indicator that a security (asset) held in the margin account has decreased in value.

When a margin call occurs, the investor must either add funds to their account or liquidate (sell) some of their assets in that account.

Why does a margin call occur?

  • It may occur when an account runs low on funds usually as a result of a losing trade
  • A margin call occurs when a demand for additional capital is required to meet the minimum margin requirement
  • Brokers may force traders to sell assets, no matter the current market price, in order to meet the margin requirement if the trader does not deposit the funds

If you’re a new retail investor and have recently joined the ape community then you’ve more than likely heard the term margin call before.

A margin call is basically a 50/50% chance a short squeeze may occur on the spot.

However, even if hedge funds are able to keep enough capital in their margin accounts to keep them afloat, at some point they’ll have to cave in.

Hedge funds have lost billions of dollars and this game is only costing them more money each day that passes.

Bloomberg News on Gary Gensler / Margin Calls

Margin call hedge funds

In this video, Bloomberg News discusses Gary Gensler, the new SEC chairman’s concerns of overleveraging and manipulation in the stock market.

This five minute video is important to log because it demonstrates and acknowledges the concerns in the market.

Perhaps the SEC was incompetent in the past to say the least. But it looks like we might be looking at some change here community.

And although this particular video was published on May 6th, below are some things Gary Gensler is already proposing in order to protect retail investors and the overall market in general.

SR-NCSS-2021-002

SR-NSCC-2021-002 AMC automatic margin calls

This proposal from the SEC is massive if it gets approved.

The SEC has heard you and they’ve been looking into hedge funds overleveraging their positions in AMC stock and other ‘meme stocks’.

This proposal would allow an automatic margin call system to margin call hedge funds with overleveraged accounts.

This margin call system will essentially target short sellers on a daily basis and identify whether they are required to raise margin minimums or liquidate their positions.

SR-NSCC-2021-002 APPROVED 6/21/2021

SR-NSCC-2021-002 APPROVED margin calls
SR-NSCC-2021-002 Approved

This proposal was delayed after its initial approval date.

However, as of today the proposal has gone through and should be in effect in the coming weeks.

However, as long as short sellers are able to keep up with their margin requirements then this regulation is rather neutral.

A lot of these rules being put into place play in our favor the more money short sellers lose.

Total Return Swap AMC

The SEC and FINRA have gotten together to review the activity of ongoing overleveraging in the stock market.

Hedge funds could soon face total return swaps per Gary Gensler, SEC chairman.

In a total return swap, the payer (hedge fund) must pay the interest on the underlying assets, plus any appreciation in the market value of the asset.

This sounds a lot like shorts paying all short borrow fee owed on top of the market value of naked shares they’ve traded.

13-F filings and short selling disclosures

Citadel Margin Call - SEC cracks down on hedge funds
Citadel margin call – SEC cracks down on hedge funds

There’s a strong possibility that hedge funds also face 13-F filings. This filing will provide the SEC with insight on equity and dark pool disclosure.

Everything now seems to be falling right into place despite the continuous short laddering.

The SEC voted 3-1 and approved the hedge fund disclosure proposal on January 26, 2022.

When will hedge funds get margin called?

Charles Schwab has recently raised margin requirements for both AMC and GME stock.

This means that if they are unable to keep the minimum cash required in their margin accounts, they’ll be required to liquidate some or all of their positions!

This would create massive price action to trend in an upwards position.

We know that short sellers are losing millions of dollars every day.

Ladies and gentlemen, this is simply a waiting game.

The point is going to come where they can no longer afford to be negative each day.

This movement is about to get on a whole other level of excitement.

The fundamentals to this AMC short squeeze have not changed.

All retail investors will have to do is hold until short sellers cave in and close their positions willingly, or brokers margin call them.

Charles Schwab raises margin requirements

Charles Schwab raises margin requirements
AMC Margin Call

The broker is adjusting 100% margin requirements for AMC on all long positions, and 200% on short term positions.

As for GameStop, the margin requirement is 100% on all long positions and a whopping 300% on short term positions.

All this essentially means is that short sellers will be required to have more cash at hand as collateral.

So, not only are hedge funds losing a lot of money every day but are now being required to put enough cash into their accounts to cover their entire positions if need be!

You know what happens if they can’t cover right?

That’s right, margin call.

Instant liquidation of their accounts resulting in the MOASS we’ve all been waiting for.

Margin calls will result in a short squeeze

At first we might experience what’s known as consecutive gamma squeezes.

These are usually triggered by high volume in the market due to expiring call options in the money or very high purchasing days.

As more short sellers and hedge funds with larger short positions in AMC stock begin to cover, we will begin to experience the beginning of a short squeeze.

A short squeeze could last several days to several weeks.

During this timeframe, the stocks price will continue to skyrocket as more short positions are closed.

It really does feel like we’re coming to an end here.

This new beginning is going to change millions of people’s lives.

NSCC-2021-010

Proposition NSCC-2021-010 allows the NSCC to act as a third party lender to oversee every transaction between lenders.

It prevents short sellers from using naked shorting strategies and from creating FTDs.

This is one of the biggest AMC news yet regarding the stock.

It’s been delayed but should go into effect this new year.

The NSCC is also requiring that short sellers have more cash at hand to limit overleveraging their positions.

When should I exit my position in AMC?

I wrote an AMC exit strategy guide to help the community make a strategized decision on how to sell when AMC squeezes.

I do want to relay that this is only my take on it.

Many of you already have your own exit strategies, I understand this.

Regardless, it’s there if you need it and would like insight from a different perspective.

And lastly . . .

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If you gained value from this article be sure to share it with the rest of the community.

Thank you to everyone publishing this information on Facebook, Twitter, Reddit, and on Discord groups.

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Read: Here’s why people are buying AMC stock: Investors guide

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Ken Griffin Lied About Robinhood Communication During Halts

Ken Griffin Lied About GameStop Halts
Ken Griffin Lied About Halts

#KenGriffinLied is trending number 1 on Twitter right now. A document was just released showing messages between Vlad and Robinhood COO, Gretchen Howard, in regards to Citadel making demands on limiting PFOF (Payment For Order Flow) back in January.

The conversation then shows Vlad stating, “maybe this could be a good time for me to chat with Ken Griffin”.

Ken Griffin lied under oath by stating Citadel had no communication with Robinhood in regards to the halts on AMC and GameStop back in January.

Hedge funds have since been overleveraging their short positions while manipulating AMC and GameStop’s stock price through the illicit use of naked shorting and dark pool trading.

Retail investors are now looking at regulators to take serious action.

Franknez.com

Welcome to Franknez.com – I’ve said it before and I’ll say it again. You are creating change this very moment. Lets discuss what we need to do to end this market manipulation once and for all.

Lets get started!

Will The SEC Protect Retail Investors From Market Manipulation?

But before I do, if you don’t know who Ken Griffin is, he’s the CEO to the Citadel Securities. This is the hedge fund who’s been betting against AMC and GameStop for months now.

Citadel is what you get if our government’s power was not divided into three branches. See, the problem here is Citadel LLC is a hedge fund, Citadel Securities is a market maker, and Citadel Connect is a dark pool.

You essentially have a tyrant making all the rules for themselves.

Now, many of you have been tagging the SEC, Gary Gensler, and even Potus on Twitter. Now it’s time for the community to see what measures are taken by our government leaders to protect its people.

In the transcript above, you can see the initial conversation between Gretchen (Robinhood COO), and Vlad Tenev (Robinhood CEO). Shortly after we see another transcript confirming the communication between Robinhood and Citadel..

Kenneth Griffin Lied about halts

Jim Swartwout is the President and CEO of Robinhood Securities. In the transcript above he states, “you wouldn’t believe the convo we had with Citadel, total mess.”

And get this, after 9 months of silence on Twitter, Citadel has gone on to lie again stating this is conspiracy theory. Although the transcripts show evidence in plain ol’ English.

The community is fighting for change. Citadel has yet to address their abuse of power through naked shorting and the usage of dark pools to mask bullish moves in the market.

Citadel’s Ken Griffin Lies Under Oath

Ken Griffin Lies Under Oath

Here is the footage of Ken Griffin lying about his team having any communication with Robinhood during the halts back in January.

The cat is out of the bag! Community, we must continue to fight for our rights for a fair market. The SEC has the power to liquidate these overleveraged hedge funds from their positions.

We must demand it. Only then will AMC and GME squeeze. This play, it’s your birthright.

Fox Business On Ken Griffin

In a recent interview with Trey’s Trades, Charles Payne and Trey discuss the matter.

Charles pull up some information confirming about 60% of AMC was traded through dark pools to which he asks Trey if it’s possible AMC’s share price potential could be higher if it did not trade through dark pools.

And of course the answer is that both AMC and GameStop could reach higher potentials if the market was being run based on supply and demand without any dark pool manipulation.

Ken Griffin Lied FOX BUSINESS

My favorite line is when Charles says, “diamonds are created over a long period of time though a whole lot of heat and a whole lot of pressure, are the apes up for it”.

This is why I’ve grown to really like Charles Payne. He’s using his platform to fight corruption in the markets.

Charles Payne has given apes the mainstream platform we need and I’m glad Trey is the ape in our community to pass the message.

Time To Get Loud

franknez.com

This is the moment we’ve all been waiting for. Will you fight for what’s yours? Share this article with the community, tag our government leaders. It’s time for the MOASS.

#LiquidateShortSellers #KenGriffinLied

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Original publication date: 9/27/2021

Revision date: 9/29/2021


AMC Margin Call: The Squeeze is Inevitable

AMC Margin Call: The squeeze is inevitable 
Franknez.com

Not investing in the stock market yet? Click here to learn how!

Lives are about to change for the new and seasoned holder in AMC stock. With a surge of retail investors in the stock, the SEC is finally cracking down on hedge funds. AMC community, you were loud and they heard you. Here’s why I think there’s an AMC margin call right around the corner.

franknez.com

Welcome to Franknez.com – the blog that protects retail investors against FUD media. Today we’re discussing margin calls.

Lets get started!

I recently published an article exposing the ‘lobbied SEC’.

The lack of regulation on short positions in AMC has been ignored for too long.

Many of you shared this post on Twitter and used the hashtag #SECdoyourjob.

I’m confident they saw YOU. So thank you for standing up for change because you got their attention.

Everything is falling right into place for AMC Entertainment stock

everything is falling into place for AMC entertainment stock

Hedge funds betting against this stock are destined to lose. Here’s why:

  • AMC’s fundamentals are no longer fragile. Retail investors and institutions alike are buying the stock. AMC Entertainment is experiencing a surge in sales revenue now that the movie theater franchise is open.
  • Shorts betting against the stock have bitten more than they can chew by continuously shorting AMC stock through the use of synthetic shares.
  • Regulators are now taking the necessary precautions to ensure they don’t lose money as hedge funds continue betting against a soaring and bullish stock.

Retail investors now have the higher floor.

The CEO of AMC Entertainment is in touch with his shareholders.

Celebrities such as Chance the Rapper have publicly announced the opportunity of this investment.

And more people are learning how to invest in the stock market through the platforms such as Franknez.com and other subreddit communities.

Wanna know what hedge funds have? Absolutely no respect nor support in the public’s eye.

ICC-2021-007 proposal gets APPROVED

ICC-2021-007 proposal
SEC AMC

This is huge news for retail investors holding AMC.

This document is 9 pages long but I’ve done the DD to help you understand what this proposal means for AMC and how it can trigger a short squeeze.

Approved on 5/18

Many retail investors have been curious as to what this proposal means and why it’s such great news for AMC.

This article is going to provide you with a quick rundown of this new proposal and will be updated as new margin call news begin to develop.

1. Flexibility on margin requirements

This proposal provides brokers with flexibility on margin requirements for institutions (hedge funds) maintaining a position in risky plays, such as a short position in AMC.

If brokers feel a short position is too risky then they can raise the amount of equity required in an account.

2. Regulators request collateral

The proposal ensures regulators have some sort of collateral from all the shorting that’s been occurring.

Regulators want to make sure that hedge funds have enough cash reserves to meet their minimum equity requirement

Risk management is the biggest takeaway from this proposal.

Related: How high can AMC stock price skyrocket up to?

Margin calls everywhere

Regulators are going to start raising margins depending on how risky the plays are for certain institutions.

Their purpose is to limit the amount of leverage hedge funds are able to use.

The ICC does not want to be responsible for closing out closing hedge funds’ positions.

This is where we can begin to see shorts cover their positions.

If an accounts updated margin exceeds the accounts capital, the broker can either margin call them (cover some risk) or completely liquidate their positions until the margin no longer exceeds the capital.

Overleveraged accounts could get margin called

Margin call

Now, because hedge funds shorting AMC are betting against a bullish stock that only knows up, shorting the stock at the moment is ultra risky. Regulators are going to start demanding higher margin requirements as collateral.

Short sellers are sitting on nearly $1 billion dollars in loses, via REUTERS.

A margin call usually occurs when an investment suffers enough losses that the investors margin account goes below a certain amount.

If hedge funds shorting AMC fail to meet a margin call requirement then the broker can begin liquidating their assets without notice.

Regulators will only step in to liquidate accounts if hedge funds continue to take a nosedive in loses.

Furthermore, hedge funds are drowning every day retail investors hold the stock.

Expect a surge in price action and volatility

Retail investors can expect a surge in price action in AMC as well as volatility.

Hedge funds are still borrowing shares to short the stock meaning they have ammo in their arsenal to drive the price down during upticks.

Shorts are going to begin covering their positions as the stock continues to skyrocket and as margin requirements are increased.

A short squeeze is inevitable. Retail investors need to hold, stay the course, and be patient.

BREAKING NEWS: Charles Schwab margin calls short sellers shorting both AMC and GME stock

Citadel buys AMC stock

Citadel buys AMC stock

Citadel just recently bought AMC stock leaving many retail investors curious behind their motive.

Will they try to reduce their loses through a debit and credit scenario where they’re forced to close their positions but also break even from a squeeze?

Or is their motive to sell and disrupt AMC’s short squeeze? Citadel’s motives will become clear as this squeeze begins to unfold.

Why do I think Citadel is going long on AMC?

The entire market is crashing. These institutions are beginning to deleverage. Pretty soon there’s going to be margin calls liquidating accounts left and right. I think Citadel bought AMC long in order to keep the stocks value. They know they’re losing and they know AMC is now a value play.

A margin call will ensure they have no money left so I personally think AMC is Citadels collateral, or emergency fund post squeeze.

Related: What is margin call in stocks? AMC saga

AMC margin call news

The purpose of this post was primarily to explain the ICC-2021-007 proposal in simple ape language for the community.

Be sure to bookmark this article as it will be a foundation to more AMC margin call news and updates.

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