Tag: Market News

How Do Hedge Funds Manipulate The Stock Market?

How Do Hedge Funds Manipulate The Stock Market?
How hedge funds manipulate the market

Hedge funds have been manipulating the stock market for decades.

But it wasn’t until now that a community has risen to raise awareness of market injustices.

The shorting of both AMC and GameStop stock have uncovered a number of nefarious strategies used against retail investors.

What is the SEC doing to regulate these financial entities?

We’re here to find out.

franknez.com

Let’s get started!

Overleveraging Borrowed Shares

overleveraged borrowed shares

Hedge funds have an incredible supply of short shares available to borrow.

This advantage has allowed them to manipulate a stock’s share price by initiating short-ladder attacks.

While supply and demand are pushing a stock’s price up, hedge funds short the stock using an insane amount of leverage.

This predatorial strategy has yet to be announced as illegal nor has it been addressed by the SEC.

Off Exchange Trading

Hedge funds and market makers are getting away with being able to trade and swap stock in foreign exchanges where the stock’s price isn’t required to be disclosed.

They’re taking retail orders and, in a way, manipulating the circulating supply by not reporting accurate transactions.

We’ve seen this happen with Barclays.

Stock market manipulation
Barclays CEO, Jes Staley – Hedge fund manipulation

Reports by Finra have been made public detailing multiple fines on Barclays for inaccurate books and records.

Barclays is one of Citadels clearing houses.

Off exchange trading where transactions aren’t displayed on the list market such as the NYSE is a massive problem the SEC is still trying to figure out.

Though the SEC is trying to implement the D-Limit order that will allow stocks to trade under IEX, they’re having trouble from hedge funds and market makers.

Citadel has sued the SEC on this matter, we have yet to receive a public update on the case.

Naked Shorting

AMC and GameStop have had an incredible amount of FTDs, or failure-to-delivers.

These are orders that have not been executed in options, and are usually a result of a ‘short party’ not owning or not having all of the underlying asset.

This has led retail investors to the educated assessment that synthetic shares are floating in the market; shares known as naked shares used to short a stock.

According to Investopedia, “Despite being made illegal after the 2008–09 financial crisis, naked shorting continues to happen because of loopholes in rules and discrepancies between paper and electronic trading systems.”

Naked shorting has gone mainstream with CNBC’s Melissa Lee and Fox Business’s Charles Payne bringing light to this predatorial practice in the market.

Retail investors must use their voice to address these issues to the SEC.

The Use of Mainstream Media Outlets

According to The Fool, you should invest in this or that “instead”.

We’ve seen the headlines countless times.

The Motley Fool is a source that provides its subscribers with hand-picked stocks with potential gains.

With tremendous respect, stick to what you do.

The integrity of this company is to help investors pick winning stocks, not to divert them from a stock due to its potential upside that can cause hedge fund partners to lose billions of dollars.

And that’s exactly what happened.

No matter how many times mainstream media outlets tried to divert retail investors from buying AMC stock, it cost hedge funds a lot of money all year.

And at the same time, a lot of retail investors have a lot of unrealized gains.

This ladies and gentlemen is how the media has tried to manipulate the performance of a stock.

This influence can sway a new retail investor from adding to the surging volume of shares being purchased in the market.

To the new retail investor – make your financial decisions based on your own due diligence.

Not on what media sources get paid to write about.

Yahoo Finance & InvestorPlace

Platforms such as Yahoo Finance & InvestorPlace have also had their fair share of negative headlines to try and divert the public from skyrocketing AMC to the moon.

With InvestorPlace even throwing a jab at GME investors saying, “If You’ve Made Money On GameStop, You’re Not An Investing Genius”.

Perhaps not, but I’m pretty certain these investors are wealthier than the person who came up with that punchline.

These media sources have been discouraging new retail investors from investing in AMC since the beginning of the year although the stock is up year-to-date!

Manipulation In The Stock Market

robinhood stock market manipulation
Robing Hood? Stock market manipulation

I’m sure you’ve all heard of the Robinhood scandal.

This is another form of manipulation in the stock market caused by the halt of buying power.

Robinhood prevented its users from buying stocks such as AMC and GME (GameStop) during GME’s bull run.

Although restrictions aren’t as tight anymore, we’re beginning to see trusted and beloved companies get exposed as hedge funds worst nightmares become a reality.

Today we’re seeing more people learn about how the stock market moves.

If more of the public is to understand how hedge funds pose a risk to our economy and businesses, we must expose these financial institutions for who they really are.

Read: Why new retail investors investing in AMC should avoid Robinhood

A House of Cards, r/superstonks (Reddit Post)

A Redditor just posted an insane amount of DD on Reddit.

This long form post discusses the transition from paper filled orders in the stock market to the use of computers going tracing back to the mid 80s.

The post reveals the beginning of issuing naked shares.

We’re also learning that a lot of transaction are being held by the actual institutions that are shorting these stocks.

Robinhood routes more than half of it’s customers to Citadel.

This information has now been disclosed via the Washington Post.

You can read the full Reddit post here.

Trey’s Trades does a quick breakdown on this DD as well.

The video is embedded for your viewing pleasure.

It costs retail investors nothing to hold, but it costs shorts and hedge funds money every day.

It’s only a matter of time before a squeeze occurs, no matter how manipulated the stock market gets.

Related: Citadel loses billions: Hedge funds are getting dragged down

Franknez.com fights The Fool, Yahoo Finance, and InvestorPlace

franknez.com

Franknez.com is fighting for the community against malpractice from all news media shunning AMC and GameStop.

This platform will serve as a positive media outlet for the community and only spread factual documentation, and news related cited-sources.

I will not encourage retail investors to take a position in AMC.

However, I will outline the facts and evidence to help you make your own personal financial decision.

How can retail investors bring awareness to the community?

Retail investors can expose false information on social media to shine light on manipulation tactics driven by hedge fund partners.

Sharing factual and positive articles relating to the performance or analytics of a particular stock is another way the investing community can stay united.

Franknez.com is a platform for the community.

I am 100% pro retail-investors and I will continue to share DD that point towards an AMC short squeeze as well as any relevant information that exposes malpractice in efforts to raise awareness.

franknez.com

Twitter | Facebook | Instagram | YouTube

franknez patreon

View my stock πŸ“Š and crypto πŸ’° purchases exclusively on Patreon.

Read: Media tries to scare people out of their money: AMC saga


AMC Spider-Man NFT News: Movie Titles To Go Digital

AMC NFT News Spider-Man NFT
AMC Spider-Man NFT News + More

Adam Aron, CEO and President of AMC Entertainment announced during the Q3 earnings conference call that AMC would be introducing NFT movie titles.

NFTs in short are non-fungible tokens known to store data using blockchain technology.

These are usually in the form of digital arts and may hold exclusive content for the buyer(s).

NFTs are changing the way we transfer information.

AMC NFTs could become extremely valuable depending on how rare certain pieces will be.

franknez.com

Welcome to Franknez.com – today I want to discuss the variety of ways AMC Entertainment can use NFTs to broaden their market. This is exciting.

Let’s get started!

And if you want to read more on NFTs, read this full article I published on what NFTs are and how they’re changing the world.

Today, Adam Aron announced the very first ever Spider-Man NFT is under development with Sony Pictures!

This is big news.

Here’s how NFTs can benefit AMC Entertainment as a company.

AMC Could Offer Exclusive Membership Services

Owning an AMC NFT could mean you have access to exclusive membership services.

This could be in the form of movie premiers for an entire year combined with free popcorn, drinks, and candy for example.

Of course, these NFTs wouldn’t be cheap.

They are after all exclusive tokens.

AMC Entertainment could also limit the number of NFTs for specific benefits.

Blockchain technology allows NFTs to be limited; thus making the token more exclusive, and expensive.

An AMC NFT could offer a limited or variety of benefits to their customers.

Movie Title Collectible NFTs

Movie titles collectible NFTs Spiderman

This is where things get extremely fun and interesting.

AMC Entertainment could make 1 of 1 movie title NFT collectibles.

These NFTs could be worth hundreds of thousands of dollars to even millions of dollars.

Especially if they make one-offs.

AMC could launch these NFTs prior to a movie premier.

The company could then raise a lot of cash based on how iconic and in demand a specific NFT is.

They could also offer other packages, say 5 out of 5.

Perhaps the one-off NFT sold but there are still 5 out of 5 of a different version out there.

NFT collectors will buy these.

See, NFTs are assets that rise in value over time.

These digital assets only get rarer, especially if there’s a limited quantity of them.

This AMC NFT news has collectors quite excited.

These will mainly be favored by movie lovers.

Spiderman No Way Home NFT

Adam Aron has introduced the first ever AMC NFT today.

Spider-Man NFT

AMC Entertainment is partnering up with Sony Pictures for the very first AMC NFTs will be made.

More than 100 unique Spider-Man NFTs will be given away to its first 86,000 online buyers of December 16 tickets for Spider-Man No Way Home.

These will be available only for Stubs Premier, A-List, and Investor Connect members.

Will you be claiming your Spider-Man NFT?

Let me know in the comment section below!

How Are NFTs Purchased?

Ethereum Cryptocurrency

NFTs are purchased with Ethereum (ETH) cryptocurrency.

While certain NFTs do accept other forms of crypto, ETH is the main currency used to purchase these digital assets and collectibles.

And if you don’t hold any ETH, you can purchase fractions of the crypto using Coinbase.

Where will AMC sell their NFTs, we don’t know yet.

While there are several NFT marketplaces, it’s uncertain which marketplace AMC will use or whether they will have their own.

Final Thoughts

franknez.com

These AMC Entertainment news are most certainly bullish.

The company is going to be able to raise a lot of capital from selling NFTs to their customers and to collectors.

There’s a lot of strategy that could be put into action here that would allow AMC to get out of debt too.

As AMC begins to emerge themselves in this NFT space, the value of the company could grow significantly.

The digital world is expanding.

I believe the future is bright if you’re an AMC shareholder.

Subscribe For Updates

franknez.com

I will be updating this article as this amazing chapter for AMC unfolds.

The launch of the companies first NFT will be featured on this page so be sure to bookmark it or subscribe to the blog to be notified for new updates.

You can also connect with me on social media below.

Twitter | Facebook | Instagram | YouTube

View my stock and crypto purchases on the Patreon πŸŽ‰


The Most Innovative Things Happening With AMC Today

the most innovative things happening with AMC
The most innovative things happening with AMC right now

AMC Entertainment is making incredible progress through their innovative approach towards the future.

The company has announced several achievements and goals during the Q3 earnings call conference.

Here’s a list of the most innovating things happening with AMC right now.

franknez.com

Welcome to Franknez.com – today I added to my AMC position. Why? Cuz’ AMC is crushing it!

Let’s get started!

#1. Cryptocurrencies

AMC gift cards crypto

It’s no secret AMC Entertainment has embraced cryptocurrency.

Adam Aron’s innovative approach stemmed from the high interest of his shareholders on Twitter.

At first, he announced AMC Entertainment would be accepting Bitcoin.

But now, he’s prioritized Dogecoin and even Shiba Inu coin.

Whether retail investors will use assets to buy a theatrical experience is up to you to decide.

I much rather invest it, how about you?

#2. AMC/GameStop Collaboration

AMC GameStop Partnership

Adam Aron teased about potentially reaching out to GameStop to see how they could innovate together.

In Q3, the CEO mentioned there were now some talks about how AMC and GameStop could collaborate.

And although nothing has been officially confirmed between the two, we do know Adam Aron is open to creating something rather innovative with GameStop.

Can you guess how this would enhance the theatrical experience?

What would you like to see happen between these two companies?

Leave a comment below.

#3. Live Sports & Concert Showings

AMC UFC Fight

Sports fans and music lovers alike were excited to see their favorite sports and concert films on the big screen.

AMC Entertainment gave its audience a little taste of an innovative project in the works.

Adam Aron has said that they have been working on obtaining licensing agreements to premier concerts and live sports events across their movie theater chains.

AMC took an innovative approach by showing the Poirier vs. McGregor UFC fight in its theaters.

AMC Chance The Rapper

We also saw Chance The Rapper partner up with AMC Entertainment when they released “Magnificent Coloring World”, a dive into the artist’s tour.

This innovation has to be one of my personal favorites, what do you think?

#4. AMC Introduces Investor Connect

AMC Investor Connect

Speaking of shareholder favorites, AMC has introduced Investor Connect.

Investor Connect is a platform designed for AMC’s shareholders.

The program gives retail investors free popcorn when they go watch a movie at their local AMC movie theaters.

This quirky perk provides investors with a small benefit for supporting the company.

Investor Connect is an innovative way to get movie lovers and movie-goers an incentive to also purchase company shares.

#5. AMC On Demand

AMC On Demand

A streaming platform has finally made its appearance.

AMC On Demand allows people to stream movies online as well as purchase movies.

AMC Theatres On Demand is available on Roku, LG and Samsung Smart TVs or via the AMC Theatres website or app.

I don’t know about you but I’m excited to see how much more innovative this streaming platform gets.

#6. CEO & Shareholder Relations

Adam Aron Twitter

Agree with me or not but the relationship Adam Aron has built with shareholders is unlike something we’ve ever seen.

Adam Aron has been able to communicate with the shareholder base to come up with all these great and innovative ideas for the company.

You don’t see this happening with other companies.

AMC Entertainment is innovative in the way the CEO connects with his shareholders.

Twitter has been a great platform for Adam Aron to run polls and ask the community questions.

The platform has also allowed the CEO to make announcements and clear any miscommunication online.

Are you following Adam Aron on Twitter? Let me know in the comment section below.

Final Thoughts

franknez.com

What are some innovative things you’d like to see AMC Entertainment do?

How can movie theaters evolve nowadays?

I’m interested to hear your thoughts.

And if you haven’t subscribed to the blog yet, be sure to do that to receive more articles like this one and many more directly to your email.

You can also follow me on social media below.

franknez.com

Twitter | Facebook | Instagram | YouTube

You can view my stock and crypto purchases on the Patreon πŸŽ‰


Federal Court Judge Is Tied to Defendant in Robinhood and Citadel Case

Judge Altonaga connection to defendant law firm
Judge Cecilia Altonaga dismisses ‘meme stock’ lawsuit

A Miami district court judge admits the Citadel and Robinhood transcripts are suspicious.

However, the federal court has dismissed the case due to a lack of evidence.

Now, it’s important to note this case is separate from Citadel vs SEC.

This is the class action lawsuit by retail investors claiming Citadel Securities and Robinhood conspired to halt GameStop trading and other ‘meme stocks’.

franknez.com

Welcome to Franknez.com – the blog that fights for the retail investor. Today we’re discussing the latest market news surrounding Citadel and Robinhood.

Justice may have not been served but at least the message from retail investors has been made loud and clear.

According to Business Insider, the court said that the evidence between Citadel Securities and Robinhood was not sufficient.

And although retail didn’t win this one, retail did manage to put 6 crooked financial institutions in court.

Judge Cecilia Altonaga Connection to Defendant’s Law Firm

What’s suspicious is that Altonaga’s husband George Mencio, is a partner to Holland and Knight, the defendant of Two Signa Securities in this case.

This creates a major conflict of interest.

This again goes to show the advantages the system has over retail investors.

judge altonaga connection to two signa securities
Source

It’s going to take serious activism from bigger influencers to really shake the system.

According to the class action document, Holland & Knight were defending Two Signa Securities.

The transcript below details the connection between the two entities.

Redditors over at r/AMCSTOCK uncovered that George Mencio, Altonaga’s husband is indeed tied to Holland & Knight.

This is confirmed through Holland & Knight’s professional’s page on their website.

holland & knight george mencio judge altonaga connection

Law.com also confirms the relationship between Geroge and Altonaga.

While it is not confirmed whether George Mencio actually defended Two Signa Securities himself, the connection between both parties is rather jarring nonetheless.

judge altonaga george mencio connection

The Reddit community is taking this matter very seriously.

Bookmark this page for possible updates.

Apes Fight a Polluted Financial System

polluted financial system

The class action lawsuit came about after “Ken Griffin lied” went viral on Twitter.

Transcripts between Citadel and Robinhood were leaked regarding the halt of GameStop and AMC earlier this year.

Now a federal judge is saying there isn’t enough evidence.

And while politicians can be bought, retail investors can’t.

Our financial system needs honest people.

This case will be another reason why the ape community will continue to make noise.

Names are being recorded and those failing to protect the people are writing their legacy.

The retail community wants justice.

It seems that for every solution retail has, there’s always some connection that intervenes.

What Do You Think Can Be Done?

I’m curious to know what you think can be done about this incompetence.

Who with massive influence can help the community shed light on these matters?

Do you think Adam Aron has a plan to take down the culprits betting against his company?

Leave a comment below.

Final Thoughts

franknez.com

Whether the connection between Judge Altonaga and George is merely a coincidence, it’s a rather good one.

Matters like this only further build my conviction in fighting for a fair market structure.

As I mentioned earlier, perhaps there was no justice in court, but there was acknowledgement.

The fight for a fair market will not happen overnight, we are living in its process.

franknez.com

Twitter | Facebook | Instagram | YouTube

You can view my stock and crypto purchases on the Patreon

Read: AMC short squeeze price: Expectations vs reality


Retail Investors Demand A Synthetic Shares Investigation

Retail Investors Demand A Synthetics Share Investigation
Investigating synthetic shares in AMC Entertainment stock

Retail investors are demanding for a synthetic shares investigation in regards to the heavily shorted stocks, AMC and GameStop.

With millions of failure-to-delivers in both these stocks, demand within the ‘ape’ community is growing for a synthetics share count.

The SEC must intervene to ensure the integrity of the market stays intact.

While Gensler has made it clear to the mainstream media his team is looking into hedge funds, retail investors now look towards the competence of the SEC.

The community is now eyeing undisclosed synthetic shares in the market.

franknez.com

Welcome to Franknez.com – the blog that protects retail investors and fights for financial market transparency.

Let’s get started!

The SEC Proves To Be Implicit

SEC Gary Gensler Synthetic shares

As far as actions prove, the SEC has had no success in making honest change in the markets.

I have personally given Gary Gensler the benefit of the doubt for quite some time now, as other influencers in the community have.

However, the SEC is another entity retail investors have been looking into.

In order to address the issues surrounding synthetic shares, retail investors are now looking within.

And this has the potential to get big.

A Tokenized Dividend Could Force Shorts To Cover

tokenized AMC NFT synthetic shares
Tokenized AMC NFT

Marc Cohodes is pitching a proposal to AMC Entertainment’s CEO Adam Aron to offer a dividend to its shareholders in a T-0 platform.

Founded by Patrick Byrnes, a T-0 platform would allow this dividend to trade in a legal lit exchange.

The premise of this strategy is to expose naked shares/synthetics by seeing how many shares aren’t accounted for in the NFT/token.

Now, Patrick Byrnes was the former CEO of Overstock and he did something like this where it actually squeezed the shorts.

In this FOX Business video, Charles Gasparino and Liz touch on the subject.

“This could be the same thing where you get a short squeeze coming out of this”, says Charles Gasparino.

Marc Cohodes will be meeting with Charles and Liz next Tuesday to discuss this tokenized NFT proposition.

And although it’s only a proposition and Adam Aron has not confirmed any plans to move forward, it’s a start to identifying how many synthetic shares are out there.

I’m also very well aware that not everyone in the community is fond of Marc Cohodes.

After all, he’s been a short seller most of his career.

However, a squeeze is imminent if Adam Aron approves this tokenized dividend.

Lenders will want to collect this dividend and the only way they will be able to do so is by requesting their shares back from borrowers.

Overstock Short Squeeze Timeline

Overstock Short Squeeze Timeline
OSTK Short Squeeze Timeline, Source

Overstock was worth approximately $5 per share when it approved the dividend.

One month later it jumped up to around $14 during the distribution period.

After two months of price growth, the company announced their earnings call and the stock squeezed past $120 per share.

Can AMC Entertainment see something similar?

Absolutely.

The only difference is the squeeze would be much more aggressive.

Read: AMC short squeeze price: Expectations vs reality

Will Adam Aron Approve A Tokenized Dividend?

will adam aron approve a tokenized dividend to identify synthetic shares

If Adam Aron approves a tokenized dividend, it would swell AMC’s share price and could potentially lead to a short squeeze like we saw with Overstock.

Adam Aron has not commented on the proposal yet.

Be sure to subscribe to the blog to receive updates on this developing story.

I’d love to hear your thoughts.

What do you think about Marc Cohodes’ proposal?

Are you for it or against it?

Leave a comment below.

Final Thoughts

franknez.com

AMC Entertainment has been a massive subject to market manipulation.

Regulators have dragged finding solutions to protect retail investors against dark pool trading, naked shorting, and off-exchange trading.

The fight for a fair market continues and it’s going to take every single one of us to make change happen.

We must show up every day and demand change in the market.

A proper MOASS will require the number of synthetic shares to be identified and covered.

This is the era of the apes.

franknez.com

Twitter | Facebook | Instagram | YouTube

You can view my stock and crypto purchases on the Patreon πŸŽ‰.

Related: Will AMC Entertainment squeeze this year?


Hedge Funds Pose Risks To Financial Stability, Fed Says

Hedge funds pose risks to financial stability says fed

MarketWatch just published a shilly article identifying AMC and GameStop as risks per the Fed’s Financial Stability Report.

However, this was a blatant lie.

I went through the FSR and found that the Feds recognize the risk hedge funds pose to the financial system due to limited visibility in hedge fund exposure.

This is important information indeed.

Franknez.com

Welcome to Franknez.com – the blog that protects retail investors against FUD media. Today we’re discussing the system risks hedge funds pose to our country.

Let’s get started!

Federal Financial Stability Report

Let’s get right down to the facts.

In the FSR, the fed describes the failure of the Archegos Capital Management and its losses through a number of large banks.

“The potential for material distress at hedge funds to affect broader financial conditions underscores the importance of more more granular, higher frequency disclosures.” via. FSR.

The Fed mentions that the Archegos incident serves as a reminder that available measures of hedge fund leverage may not be capturing important risks.

This report highlights the potential for nonbank financial institutions such as hedge funds and other leveraged investors to generate large losses in the financial system.

Hedge funds seem to be in deep waters even with the fed.

What Other Risks Are Mentioned In The FSR?

While MarketWatch was eager to point retail investors were a risk to financial stability per the fed, this is not true.

The fed states in their report that “the appetite for risk has increased broadly, as the meme stock episode demonstrated.”

This simply means they’ve recognized that more people are willing to bet on the upside potentials of these specific securities.

Other ‘risks’ mentioned are those of the corporate bonds market where there’s also an elevated appetite for the securities.

The Federal Financial Stability Report doesn’t mention that ‘meme stocks’ like GameStop and AMC pose risks to financial stability but rather more people are willing to take risks.

And it’s for this reason the feds are closely monitoring hedge funds and retail investors to “ensure the financial system is resilient.”

The report, which you can find here, tackles the issues surrounding overleveraged positions and losses from banks, not retail investors.

Regulators Are Looking At Hedge Funds

The SEC is currently fighting Citadel Securities over a D-Limit order that would prevent the hedge fund from using high frequency trading.

Gary Gensler also said the rise in retail trading and engagement is “positive” but that it’s prompted the SEC to take a real close look at dark pools to promote market transparency, via Forbes.

Gensler also pointed out that dark pools have been increasingly common during the rise in retail investing.

So while hedge fund affiliated media tries to sway retail investors, all eyes are on the risks hedge funds pose within our markets.

The Citadel vs SEC court hearing has gone private at this point an no updates have been released to the public yet.

You can read the full summary on the very first hearing here.

Consider Subscribing For More Market News

franknez.com

Franknez.com is the blog that protects retail investors from FUD media. Consider subscribing to the blog today for articles on stocks, crypto, and market news.

You can connect with me on social media using the links below.

Twitter | Facebook | Instagram | YouTube | View my stock and crypto purchases on the Patreon πŸŽ‰


Citadel And Virtu Are Creating Massive Systemic Risk

Citadel and Virtue Systemic Risk

The system almost failed earlier this year due to the systemic risks in the hands of the two biggest market makers.

Citadel and Virtu CEO’s Ken Griffin and Douglas Cifu continue to argue that retail investors have never had it better.

Although the SEC has been observing for quite some time, they are finally looking into both of their business models.

But is that enough?

What can be done in order to avoid the collapse of an entire system?

The SEC has taken a stance against high frequency trading and is currently supporting the D-Limit order from IEX.

It’s time for retail investors to speak up and let our government leaders know our needs in the market.

Franknez.com

Welcome to Franknez.com – the blog that fights for retail investors and for a fair market. Today’s topic is extremely important so let’s dive right into it.

Let’s get started!

System of Checks and Balances

checks and balances

In the United States, the system of checks and balances provides each branch of government with individual powers to check the other branches and prevent one branch from becoming too powerful.

However, there seems to be a massive concentration of power between market makers Citadel and Virtu in the finance world.

These two market makers are responsible for processing majority of retail investor orders.

This creates massive systemic risks since there is so much power concentrated just within these two key players.

Should one or both fail, the entire system could collapse.

This almost happened in January during the ‘meme stock’ rallies.

Citadel claims they were the only market maker processing orders from Robinhood and this is a big problem.

There needs to be a separation of power.

It’s extremely important that retail investors voice their needs from government leaders regarding this matter.

PFOF Takes More Than It Gives

Citadel, Virtu, and Robinhood continue to stand by payment for order flow.

The issue with PFOF is that it takes more than it actually gives.

Market makers argue that it saves retail investors billions of dollars annually but fail to mention that they also make money from retail through high frequency trading.

In this documentary you will find Citadel makes their money shorting stock.

The Story of Citadel

Retail investors don’t want their orders processed by a company that is a market maker, hedge fund, and dark pool all at the same time.

Not only is Citadel profiting from retail money through high frequency trading, but they are also shorting the stock retail investors are buying through various means.

Dark pool trading and naked short selling are some other ways we’ve seen hedge funds suppress the rise of a stocks share price.

More so in ‘meme stocks’ such as GameStop and AMC, which are heavily shorted.

But there’s another issue that has yet to be addressed and that is OTC, or what’s also known as off-exchange trading.

The Rise of Off-Exchange Trading

Recession

Over-the-counter (OTC), or off-exchange trading is when trading occurs between two parties instead of through an exchange, such as the NYSE (New York Stock Exchange).

Market makers essentially negotiate with one another through dealer quotation services such as FINRA’s OTC Bulletin Board.

Yes, that is the same FINRA that is supposed to be protecting retail investors and safeguarding market integrity.

Off exchange trading is not as regulated as the NYSE nor does it require prices to be publicly disclosed.

Market makers can short a stock in these off exchange trading platforms and also create a ‘perfect hedge’, allowing them to offset or eliminate all risk on their position(s).

Retail investors go long on stocks.

So when market makers such as Citadel and Virtu are using tools to make money from shorting stocks, retail investors are at a massive disadvantage.

Market Makers Are A Threat To Our Economy

Market makers pose a serious risk to our economy and the businesses that provide massive value to our society.

As long as this concentration of power isn’t broken, the United States economy will always face systemic risk.

And when the entire country is economically on its knees, financial institutions who shorted on the way down will be the only ones compensated for it.

This is when integrity is buried by greed.

So what’s going to be done about it?

Our community now has a voice.

We must continue to fight against market corruption, and we must fight for a fair market.

Only then will we be able to mitigate systemic risk and make a positive impact in our economy.

Retail Investors Can Grow Our Economy

retail investors can grow our economy

With more people now learning about the markets more than ever, this could greatly benefit our economy.

Not only does the average person get to invest in the stock market, but we get to support the ideas and innovations of the companies in our country.

People don’t need to make a lot of money to invest.

But fair investing could improve the quality of life for millions of people.

The average person could provide more for their family, the government would collect capital gain taxes, and our businesses would excel much more rapidly.

Our government must look at solutions for economic prosperity and growth.

Market makers such as Citadel and Virtu suppress economic growth for their selfish gain.

They do not contribute to society.

This is why we’re seeing a power like China catch up to the United States with such an intense and exponential growth.

They’ve eliminated a lot of the issues in their markets that we have in ours today.

Institutional investors play a dominant role in the U.S markets, while Chinese markets are dominated by retail investors.

This, ladies and gentlemen is why there are now more wealthier Chinese than there are Americans.

Our government must look at market structure and identify what is going to spur growth in our nation.

Leave A Comment Below

I’d love to hear your thoughts in the comment section below. What does our government need to do to mitigate systemic risk?

Do you believe retail investors and make a greater and more positive impact than market makers can?

Share your thoughts below.

Also, consider subscribing to the blog for more market news, stock, and crypto articles.

franknez.com

Twitter | Facebook | Instagram | YouTube | Discord access + exclusive FrankNez content πŸŽ‰

Read: Stock & Crypto News


These 2 Institutions Just Bought More AMC Stock

Institutions buying AMC
Institutions are buying AMC stock again

Often times when institutions buy a specific stock, it’s a strong indicator of their belief in the stock.

Whether that be short term or long term, it’s definitely bullish sentiment.

I’ve been saying for quite some time now that AMC has reached a new floor, and I think institutions know this too.

Let’s get right into it.

franknez.com

Welcome to Franknez.com – the blog that brings you market news and trending stock and crypto plays.

Let’s get started!

Raise your hand if you’re getting tired of seeing AMC trade in the mid to high $30 level range?

I’m not, and I’m going to tell you why.

This consolidation period has allowed new retail investors to establish a position in AMC, and long-term holders like myself to add to our positions.

It has also given institutional investors a cooling period to study this new level of resistance.

We’re seeing a pattern here.

Institutional investors were bulking up on the stock before the big runup back in June.

Here are 2 institutions that just bought more AMC stock.

#1. State of New Jersey Pension Fund

The State of New Jersey Pension Fund has filed a 13F-HR form disclosing ownership of 296,465 AMC shares from it’s previous 229,643 back in July.

That’s a 66,822 share difference, or 29.10%.

State of New Jersey Pension Fund AMC

The file date is of last week, October 27th.

This institution provides active employees, retirees, and employers with pensions and health benefits.

I feel like an institution who provides this much value to their state and buys this momentum stock, is quite significant.

Whether they’re looking at AMC for a short squeeze or as a long-term investment, they’re sending signals money is to be made here.

As if we don’t know that, right?

#2. First Trust Portfolios LP

A more recent financial institution that just loaded up on AMC stock is First Trust Portfolios LP.

First Trust Portfolios AMC
Via. S3 Partners Security Ownership

First Trust Portfolios LP has been offering investment products and advisory services since 1991.

“When it comes to investing, it is critical to know what you own.” – First Trust Portfolios LP.

I’m going to have to agree with that πŸ’―.

This financial institution just added 617,952 shares of AMC stock to their portfolio.

The filed date was November 1st of this month.

They now own a total of 762,328 shares of AMC Entertainment stock.

That means they owned 144,376 shares before going heavy!

And just from experience, you don’t go heavy unless you have a strong conviction in an asset.

So, What Does All This Mean?

These aren’t the only institutions buying AMC stock, they’re merely the most recent and biggest buyers at the moment.

We’re starting to see other financial institutions increase their positions at a smaller scale as well.

  1. Royal London Asset Management | 6,779 increase filed on November 2nd.
  2. Asset Management One Co. Ltd, | 8,292 increase filed on November 2nd.
  3. Nordea Investment Management | 1,638 increase filed on November 1st.

These numbers look small compared to NJ Pension Fund and First Trust Portfolios.

But the list of recent financial institutions buying AMC stock goes on and on.

Very few institutions have cashed out.

And if you look at it’s previous history, you’ll find that although quite a number of financial institutions took profits back in May, June, and July, institutions have begun to buy AMC stock at it’s current share price level.

It all comes down to pattern behavior.

Will AMC Have Another Massive Upswing?

In my opinion, the pattern behaviors are all too familiar to think otherwise.

When AMC set a new floor after its runup to $20, it consolidated and financial institutions bulked up on the stock before its next major run to $70 per share.

Well, AMC has set a new floor again and we’re starting to see institutional investors are buying and holding the stock again.

What’s it going to take for retail to see another massive upswing?

Patience.

Will the third runup be bigger than the second?

I certainly think so.

I’d love to hear your thoughts below.

Subscribe To The Blog

franknez.com

Join more than 10,000 readers who are already on the blog’s newsletter. New content on market news, stocks, and crypto are published daily.

You can also follow me on social media below.

Twitter | Facebook | Instagram | YouTube | Discord access + exclusive FrankNez content πŸŽ‰

Read: Stock & Crypto News


3 Judge Panel Breakdown: Citadel VS SEC Lawsuit Hearing

Citadel Securities vs SEC Lawsuit Hearing
Citadel Securities vs. SEC lawsuit hearing

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.

franknez.com

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

Citadel

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)

IEX

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”

money

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

High frequency trading

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.

For more on IEX and how this exchange will affect AMC and GME shareholders, read my latest article here.

But in short, the market’s share price would reflect more on the actual supply and demand, releasing pressure for growth.

The SEC Is Fighting To Protect Retail

SEC

The SEC has been under fire by retail investors primarily due to the lack of regulation within our markets.

However, I think it’s fair to say the SEC is doing a great service by supporting IEX and the D-Limit order that will level the playfield for all participants.

Although the SEC’s discussion in the lawsuit hearing was brief, Emily Parise stood her ground as to why the SEC was not violating the Administrative Procedure Act.

This case continues today and I will be updating you on the second part to the lawsuit hearing here tomorrow.

You can watch the hour debate on YouTube here (starts at 55:00).

Subscribe To The Blog For Updates

franknez.com

Subscribe to the newsletter to be updated on this developing story plus new articles that get published daily.

You can also follow me on social media to stay up-to-date on what’s new in stocks, crypto, and market news.

Also, be sure to check out the YouTube video of me briefly discussing this topic and don’t forget to subscribe.

FrankNez is now on YouTube!

Twitter | Facebook | Instagram | Discord access + exclusive content πŸŽ‰

Read More: Stock & Crypto News


Citadel Fights The SEC On New D-Limit Order Against Arbitrage

Citadel vs SEC Court Hearing October 25th October 26th October 27th
Citadel Securities LLC v. SEC October 25th | Citadel Securities sues SEC

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.

β€œThe 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.

franknez.com

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?

SEC

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.

Citadel securities vs sec court - Citadel sues SEC
Source –> Link

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.

Citadel enjoys unfair advantages over other market participants
Source: page 13

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?

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.

Final Words…

franknez.com

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.

Twitter | Facebook | Instagram | Discord πŸΏπŸ¦πŸš€

Read: Why Is Citadel Frightened of The IEX Exchange?


© 2021 Franknez.com

Theme by Anders NorenUp ↑

%d bloggers like this: