Tag: NSCC-2022-003

AMC FTDs Top 51.6 Million This Year Through June

AMC FTDs
Stock Market News: AMC FTDs top 51.6 million year-to-date

AMC’s FTDs have skyrocketed this year.

These FTDs (failure-to-deliver) are millions of orders unaccounted for in the lit market.

An FTD happens when a party is unable to deliver a tradable asset or meet a contractual obligation in a transaction.

Naked short sales and selling an asset without borrowing it first are two of the leading causes for failures to deliver.

I’m going to break down how many FTDs AMC has had every month this year so far.

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Number of AMC FTDs per month

AMC FTDs
AMC FTD Chart – AMC Naked Shorting – AMC Failure to Deliver

AMC Entertainment Holdings, Inc. has had millions of FTDs this year.

Here they are broken down per month.

January 2022: 2,016,672

February 2022: 3,138,919

March 2022: 6,011,866

April 2022: 4,326,160

May 2022: 1,091,540

*June 2022: 35,071,358

Total: 51,656,515 so far.

Last month AMC FTDs surged past 35 million!

June saw the highest AMC FTDs it’s seen all year.

The dollar amount of these FTDs mount up to hundreds of millions of dollars.

The alarming number of failure-to-delivers in AMC goes to show institutions shorting AMC stock are getting away with fraud.

They are creating naked shares to short AMC stock by essentially writing checks out that end up not clearing, resulting in FTDs.

In the process, short sellers are able to make profit without any accountability.

March had the highest amount of AMC FTDs so far with more than 6 million being recorded.

In March we saw AMC surge past $34 per share before it was halted and suppressed alongside GameStop, which surged to $199 per share.

Related: 98% of Ticker Had Few FTDs Than GameStop

Final thoughts

AMC Naked Shorting
AMC Naked Shorting – AMC Failure to Deliver

The grand scheme of naked shorting has been the most blatant market manipulation in finance history.

Yet regulators such as the SEC can’t seem to plug the loophole.

It’s up to retail investors to demand change in the markets to level the playfield.

NSCC-2022-003 could be a start to eliminating fire selloffs and potentially limiting naked short selling.

But it’s not enough.

The retail community must continue to raise awareness of these predatorial market conditions in hopes to create real change for all participants.

I’d love to know what you think.

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Market News: NSCC-2022-003 Approved

NSCC-2022-003
Stock Market News: NSCC-2022-003 has been approved

NSCC-2022-003 has been APPROVED.

The filing replaced NSCC-2021-010 which was withdrawn on March 25th of 2022.

The rule aims at providing a more stable environment for market participants and I’m going to break it all down below.

Let’s get started.

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NSCC-2022-003 SFT clearing service

NSCC-2022-003 would implement the SFT clearing service (securities financing transactions).

This means the NSCC would act as a third party to clear FTDs (failure-to-delivers) from various institutions.

The NSCC would also collect margin from both the lender and borrower to mitigate any risk.

Here the NSCC essentially acts as a referee, preventing overleveraging, naked shorting, and FTDs in the market.

Predatorial short selling strategies could potentially be eliminated due to this filter.

The NSCC believes it can reduce market disruption from fire sales by liquidating positions in small batches.

I’ve stated in recent articles and on my channel that a squeeze in AMC and GameStop will likely occur in sequences.

A ‘controlled squeeze’ so to speak to avoid systemic risk in the market.

It’s very possible NSCC-2022-003 was created to unwind this mess in a manner that would prevent the stock market from collapsing.

Does the rule help hedge funds?

Yes, but it also helps retail investors.

While NSCC-2022-003 provides a safety net for overleveraged institutions, it will also create more balance in the market for retail investors.

The NSCC is requiring all SFT members to provide a $250,000 margin minimum amount.

And with DTCC B16845 already raising margin requirements, I think it’s fair to say hedge funds are being put on a leash.

Investors have been asking me, what happens if a hedge fund defaults?

Will they be held accountable for their short positions?

Assuming a hedge fund becomes an SFT member, under NSCC-2022-003, the NSCC would take all responsibility and be obligated to meet all settlements.

Although the proposal requires a $250,000 margin minimum, the NSCC is requiring members to hold sufficient liquidity to cover the largest settlement obligation.

In other words, every short position will be obligated to get closed.

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Related: Is a New AMC Stock All-Time High Coming Soon?

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