Tag: Retail Investors

Retail Investors are Rising Against Wall Street Corruption

Retail investors are rising against Wall Street
Market News: Retail investors are raising awareness of market injustices.

I’ve been fortunate enough to have seen the rise of retail investors for the better part of 2+ years against Wall Street.

Conflicts of interest amongst Wall Street, banks, and mainstream media were uncovered during the ‘meme stock’ frenzy in January of 2021.

But it didn’t stop there.

Throughout 2021 and 2022, the retail community has raised awareness of market injustices, claiming the SEC’s chairman Gary Gensler has only been complicit to the illicit activities that occur on Wall Street.

The disadvantage retail investors have over hedge funds has never been clearer.

Between naked shorting, FTDs, OTC trading, Dark Pool trading, PFOF, and short and distort campaigns, the cat has been out of the bag.

The question now is what is being done to tackle the problems retail investors are facing?

Wall Street has been able to take advantage of the little guy through the predatorial practices mentioned above with no repercussions from regulators.

Will retail investors continue to rise against Wall Street in 2023?

There are no doubt activists will continue to push reform until there is real change that levels the playing field for retail.

People Are Waking Up to Mainstream Media

Elon Musk has been calling out mainstream media on Twitter for misleading information or ridiculous hit pieces.

The impact Elon is having on Twitter is something that has not been seen.

He’s been able to raise awareness by simply ratioing mainstream media accounts, often times putting them in their place.

People have always voiced their opinions and concerns with mainstream media, but now the people have the biggest influencer in the world backing them up.

Citizen journalism has already been exponentially rising as blogs and independent media websites begin to report what mainstream media is failing to report.

The people are now following more sites such as Franknez.com and Nezmediacompany.com for market news and retail updates.

Mainstream media has been used by big financial institutions to push agendas that cater to their financial interests.

In a CNBC exclusive, Elon Musk says “hedge funds have used short selling and complex derivatives to take advantage of retail investors.”

This is something retail investors who purchased so called ‘meme stocks’ last year found out very easily.

The complex derivatives Elon is referring to could be an array of things such as options trading, HFT, swaps, borrowed stock, and even naked shares.

The Tesla CEO says hedge funds will short a company, conduct negative publicity campaigns to drive the stock price down, then cash out and do it multiple times over.

This tactic is what’s known as “short and distort”.

Hedge funds impose their influence on corporate media such as The Fool, Wall Street Journal, and MarketWatch to scare people out of their money.

How Can Retail Investors Make a Dent?

Wall Street and Mainstream Media | Wall Street corruption.
Wall Street and Mainstream Media | Wall Street corruption.

Retail investors will have to continue to raise awareness when activists and citizen journalism demands it.

But even retail investors have had their better days, with some even refusing to give their viewership to independent hosts and journalists simply due to capitalization involvement.

Retail investors have more power than they know, but it only combats mainstream media when they support citizen journalism or independent hosts working on spreading the truth.

The people will rise against Wall Street corruption, with or without independent journalists and platforms.

Though more can be done with the latter.

Related: Elon Musk: Hedge Funds Tank Stocks Using ‘Short and Distort’

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Ken Griffin Speaks Out on Retail and FTX Collapse

Ken Griffin Speaks on FTX and retail investors
Market News: Ken Griffin speaks out on FTX and retail investors.

Billionaire investor Ken Griffin, the founder and CEO of multinational hedge fund Citadel, warned that the collapse of cryptocurrency exchange FTX could weaken confidence in financial markets at large and hurt the ability of younger investors to save for retirement.

Ken Griffin told Fox Business, “FTX is one of these absolute travesties in the history of financial markets.” 

His remarks come less than a week after the implosion of FTX, which at its peak was the third-largest cryptocurrency exchange.

The firm’s bankruptcy may affect up to 1 million creditors and comes amid reports that at least $1 billion in client funds disappeared.

The Wall Street Journal is now reporting that ex-CEO Sam Bankman-Fried cashed out $300 million during a $420 million raise from several investors last year for personal use.

Sam Bankman-Fried is now facing a class-action lawsuit that was filed on November 11th, 2022.

Celebrities named in the lawsuit include Steph Curry, Shaquille O’Neal, Shohei Ohtani, Naomi Osaka, Larry David, and Kevin O’Leary who allegedly helped Bankman-Fried promote the exchange.

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Citadel’s Ken Griffin Says Retail Investors May Likely Ditch the Markets

Griffin expressed concern that losses sustained by younger investors who lost money due to FTX may make them less likely to invest their savings in capital markets, including traditional instruments like stocks and bonds.

“The confidence, though, of a generation in financial markets has also been shaken. That’s really awful because the 20-some-year-olds to 40-year-olds who are so engaged in crypto — they’ve got to save for their retirement, and if they don’t believe or trust in financial markets, this is a huge problem. They need to own stocks, they need to own corporate debt, they need to partake in our global capital markets,” Griffin said.

Citadel is currently partnering with Virtu, Schwab, Paradigm, Sequoia, and other Wall Street giants to form EDXM Crypto Exchange.

A cryptocurrency exchange that is supposed to provide transparency and lower transaction costs through the use of high liquidity and tight spreads.

But concerns are growing within the retail investor community as Citadel enters the crypto space, calling it an outrage due to the hedge funds’ long history of abuse of power.

“The bottom line is American investors have really gotten hurt here to the tune of hundreds of billions of dollars in decline in market cap in crypto over the last two years. I mean that really strikes at the entire core essence of what investor protection is all about,” Griffin said.

Source: Fox Business.

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10 Myths About The AMC Apes The Media Has Wrong

Apes Together Strong
Apes Together Strong – AMC Apes

Who are the AMC apes?

They’re the retail investors fighting for market change in our financial system.

We’re the ones who saved AMC and GameStop from going bankrupt.

franknez.com

Welcome to Franknez.com – the blog that provides you with articles on stock, crypto, and market news. Here are 10 myths about the AMC apes the media has wrong.

Let’s get started!

1. “Apes Have No Education”

Apes Together Strong

Apes actually come from a variety of backgrounds and yes, professions.

Retail investors in the community range from your average 9-5 hustlers to business owners, doctors, and even lawyers.

Though many identities are kept hidden, it’s not difficult to see why.

People from all over the world have become an ape for more reasons than just money.

2. “Apes Want To Overthrow The Government”

apes are exposing financial risks

Apes don’t want to overthrow the government, apes actually just want a fair market.

Contrary to how apes are portrayed in the mainstream media, the community is not made up of hooligans who want to overthrow the government.

Apes simply want government to hear the communities concerns regarding the market.

Hedge funds pose risks to our financial system.

The ape community has made it a mission to create real change for a fair market thus sparking a real movement.

3. Not Everyone Is A New Retail Investor

New Retail Investors

The community attracted many new retail investors.

However, many apes have been investing in the stock market for years.

I’ve actually provided the community with my personal long-term winning stock picks for when they’re ready to diversify.

Other apes in the community show new retail investors how to read chart patterns and even how to day-trade other plays that aren’t AMC or GME.

This is the community where the average person can not only learn how to invest in stocks, but also gain magnitudes of value and knowledge.

#4. We Don’t All Hang Out On Reddit

apes wallstreetbets reddit

Although apes started on Reddit, a lot of apes don’t actually affiliate themselves as a ‘Redditor’ or with r/wallstreetbets.

AMC and GME apes have separated from r/wallstreetbets mainly due to an increase in infiltration from shills, toxic persons who’s mission is to bring down the community.

Subcommunities are now much tighter around a variety of influencers within the community as a whole.

And although we don’t often identify as community leaders, influencers have done a great job at keeping retail investors together.

#5. We’re Not 19 Years Old

AMC Apes Retail Investors

Contrary to what the media might think, the ape community is not made up of 19 year-olds.

In fact, majority of apes are much older than that.

But, I won’t give that information out to marketers.

The community isn’t naïve, there are a lot of wise and intelligent people with real stories and lots of experience here.

The media often times portrays us as rebellious youngsters.

But I believe many of us will actually be the future leaders of our nation.

#6. We Don’t Actually Eat Crayons, Well Sorta

apes eating crayons

Eating crayons is a taunt and is part of the ape community culture.

It’s a message to smart money that we’re dumb money, yet we’re making money while they lose it by shorting AMC and GME stock.

The meaning of eating crayons originally separated us from formally gathering as a community to buy these stocks.

“Buy and hold, but what do I know, I’m just a crayon eating ape.”

Although I must say, I wouldn’t be surprised if some apes do consume these delicious snacks 😅😂.

#7. “Apes Just Want To Make Quick Money”

apes don't day trade amc or gamestop

If apes wanted to make quick money, then the community would be day-trading AMC and GME stock.

However, that is not the ape way.

Apes buy and hold the stock.

Seasoned apes who got in early could have cashed out tremendous amounts of gains but continue to hold because it’s not about making a quick buck.

It’s about making life changing money through a short squeeze play.

Apes have a why.

In fact, leave a comment below what your why is.

Why do you hold AMC and/or GME stock?

#8. “Apes Worship Adam Aron and Ryan Cohen”

AMC and GameStop Partnership

The community has a tremendous amount of respect for AMC CEO, Adam Aron and GameStop Chairman, Ryan Cohen.

We support them because they’re running the businesses of America’s two favorite stocks.

We want to see them succeed, but we don’t worship them.

In fact, most apes are willing to continue investing in both companies after MOASS, especially if a dividend is announced.

#9. We’re Actually Not Jim Cramer’s Friend

Jim Cramer AMC Apes

Despite The Street’s Jim Cramer portraying to be close to the ape community, he can’t sit with us.

Few apes actually respect the guy, but he can’t sit with us.

Did I mention that?

Mr. Cramer has just contradicted himself too much and the community is huge on trust.

We have more trust for FOX’s Charles Payne and CNBC’s Melissa Lee.

#10. Apes Invest In More Than Just ‘Meme Stocks’

Apes invest in more than just meme stocks

The ape community might have a ton of new retail investors only dedicated to AMC or GME stock specifically.

However, many apes are also invested in other assets such as crypto and even NFTs.

Apes are the retail investors who are finding the early plays and putting their money to work for long-term financial gain.

Some popular crypto apes are currently invested in are Dogecoin and Shiba Inu coin.

These Retail Investors Fight For What’s Right

The AMC and GME communities are a beacon for change.

We seek to establish a fair market so that future generations no longer get taken advantage of by corrupt hedge funds and financial institutions.

I’m confident the fight for a fair market will further continue even after AMC and GME MOASS.

What else does mainstream media need to know about the community?

Leave a comment below.

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AMC apes – watch this.

Gensler’s Agenda Violates Investors’ Right for a Fair Market

Gensler's Agenda
Gensler’s Agenda – Falling Further Back

SEC commissioners have released a statement on the SEC’s website regarding Gary Gensler’s Agenda.

Commissioners Hester Pierce and Elad Roisman are disappointed with Gary’s proposals, noting it fails to include proper investor protection.

The retail community’s concerns have fallen upon deaf ears when attempting to reach Gary Gensler.

The SEC’s Chairman has failed to establish a relationship with retail investors and protect them against market injustices.

Is it time to replace the SEC’s Chairman due to negligence of retails rights?

Here’s what commissioners at the SEC are saying.

franknez.com

Welcome to Franknez.com – while Gary Gensler had a real opportunity to win retail, he chose not to take matters seriously. Now he’s under intense scrutiny.

Let’s get started!

No Sign of a Fair Market on Gensler’s Agenda

Falling Further Back SEC Statement

“It fails to include any items intended to facilitate capital formation and misses opportunities to foster fair, orderly, and efficient markets and further investor protection”, says the statement.

Titled, “Falling Further Back“, the commissioners mention Gensler’s agenda plans to redo recently completed rules, and add new regulatory obligations, and constrain investor choice.

This sounds like Gary Gensler is anti-retail investor.

To constrain investor choice is to force a particular course of action.

Recent rules made by the SEC protect retail investors in some form against hedge funds, so why does Gary Gensler want to alter these existing and completed rules?

To impose new regulatory obligations on retail investors sounds rather restricting if you ask me.

Another issue these commissioners encountered in Gensler’s Agenda is the neglection of helping companies raise capital by lowering their thresholds.

Higher thresholds provide a plethora of opportunity to employees, businesses, and small investors.

Abandonment of OTC Trading Regulations

SEC Securities Exchange Commission

The commissioners are disappointed that the agency is no longer considering the approval of regulating the quality of OTC transactions.

OTC, or over the counter markets is where trading occurs outside a centralized exchange such as the NYSE.

OTC trading provides hedge funds with a loophole to commit fraud since there is less regulation and wider bid-ask spreads to manipulate the market.

Keep in mind commissioners over at the SEC are disappointed with these choices.

It is not common for colleagues to speak out against one another.

But their hands are tied behind their back.

It’s going to take the community to raise awareness surrounding these alarming concerns that allow financial institutions to manipulate the market.

Low CAT Data Security Leaves Investors’ Data Vulnerable

Cyber security is massively important in today’s world and commissioners over at the SEC say Gensler’s agenda fails to prioritize action on data security.

The CAT system, also known as consolidated audit trail, is the current computer system used to record orders, quotes, and trades and identifies the brokers dealing them.

They fear that slowing down the protections around the CAT system leaves investors’ data vulnerable.

Measures were supposed to have taken place last spring but have now been put off.

The end of the statement reads, “We urge the Commission to apply our scarce resources toward better uses than undermining recent precedent and depriving the markets and investors of these rules’ benefits.”

If the SEC is not properly funded by our government to take appropriate measures in the market, then this too causes systemic risk.

There’s no question the SEC Chairman must be replaced but that is only my opinion.

Leave Your Thoughts Below

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Why do you think Gensler’s agenda is aimed towards regulating retail investors?

Does this new surprise you?

Leave a comment below.

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Read: SR 21-19: The fed is about to impose massive margin calls

Topic Discussion with FrankNez

How To Solve Issues Within The Retail Community

AMC Retail Community

There has been a massive boom of new investors within the retail community.

The community has grown on Twitter, Facebook, and Reddit ever since the rise of GameStop, AMC, and other ‘meme stocks’.

What is keeping this new wave of retail investors alive?

For most it’s the drive to make a life changing trade.

For others, it’s more than just the money.

It’s about fighting against market corruption.

As the community grows, we’re beginning to see a little bit of division.

While not everyone in the retail community might see eye to eye, there are certainly ways to solve common issues.

franknez.com

Welcome to Franknez.com – if you’re a retail investor you’re going to gain so much value from this article. I hope you enjoy.

Let’s get started!

Finding Common Ground

retail community

It’s important to identify the common ground when facing issues within the retail community.

Whether you agree with someone or not, are their actions going to affect your money?

Your trade or your investment?

And if so, is it positive or negative?

The retail community, but most specifically the ape community, has a common goal to squeeze short sellers from their positions.

The common ground here is the retail community wants a mother of all short squeezes.

The retail community as a whole isn’t divided, we’re simply beginning to understand our differences.

We’re beginning to identify a variety of scenarios and ideas that may cause a short squeeze within AMC for example, and not everyone agrees.

Or, some retail investors are inclined to think there is only one short squeeze play, whether it’s AMC or GameStop.

What’s the common ground here?

Retail investors are saving companies they believe in from hedge fund culprits.

Eliminate Cheap Influencers

If you’re growing restless from Twitter drama, it’s more than likely because you’re following influencers projecting drama energy.

I’ve mentioned this in the past.

The retail community needs to look out for their well-being and identify which influencers are actually providing valuable information and content.

AMC was clout for the online personalities you see now that don’t provide real value to you.

It’s never been easier to identify these people than it is now.

Solve these headaches by eliminating influencers from your timeline that provide no true value to you.

Some issues within the retail community are much simpler to solve.

The type of energy you follow is what the AMC community will mean to you.

And to the influencers reading this, what you say matters.

You have the power to shun all negativity, don’t feed it.

Respect Valuable Influencers

The reason many retail investors have been able to make a massive amount of money on paper is primarily due to a number of valuable influencers.

At one point you read, or watched a video on what was happening with GameStop or AMC earlier this year.

Whether you hold now because of that influencer or not is 100% up to you.

But you cannot deny, disrespect, or attack a valuable influencer for simply being an influencer.

While yes, I agree that some personalities have more influence than they should, you have the power to exclusively follow those who bring real value to the table.

So what’s a valuable influencer?

These are the influencers that have been providing you with value nonstop, year round.

Drama-free, just giving.

They’re the ones fighting for a fair market and look out for the community as a whole.

The ones who actually care about you making tons of money.

The Content You Consume Matters

Reddit, Facebook, Twitter, Discord, there are so many ways to consume content from the community.

This content can be a simple Reddit post or a tweet.

I believe most issues the retail community is facing at the moment is due to consuming content that manifests mental exhaustion.

Because you already know how easy it is to HODL.

The content you consume matters, community.

The Data Hasn’t Changed

amc retail community

An issue the retail community is battling against in the macro is that of overleveraged hedge funds.

The financial system is polluted.

These momentum stocks continue to be heavily shorted.

And hedge funds will eventually have to cover.

The way we can solve these issues surrounding hedge funds is by being consistent about the message.

A proper short squeeze will require either serious buying pressure or honest regulation.

But it’s up to each and every one of us as individuals to make a ruckus and make each day count.

Final Thoughts

franknez.com

Disagreeing with a fellow community member does not mean it should be the end of the world.

We must shift our focus towards squeezing shorts from their positions.

Because in the end, when a short squeeze happens, no one will argue the point in how it happened.

Stick to your convictions, respect one another, and enjoy the awesome and positive things about this rare retail community.

I’m in the middle of publishing some market news for you, stay tuned.

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Read: AMC short squeeze price: Expectations vs reality


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.

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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.

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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

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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.

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Criminal In A Seat Of Power: Rep. David Scott Attacks Retail

David Scott Retail investors
David Scott VS Retail Investors

Rep. David Scott of Congress was once named one of the top 25 most corrupt members of Congress by the political watchdog group of Citizens for Responsibility and Ethics in 2007.

Now he wants to put a bill that will make it hard for retail investors to participate in the stock market and even implement jail time for users on social media…

Yeah this is not going to go well.. at least for rep. David Scott it’s not.

franknez.com rep david scott

Welcome to Franknez.com – the blog that fights for your financial freedom. Today I want to discuss why our community continues to be a beacon for change against market manipulation.

Let’s get started!

Leaders are getting desperate. Retail investors are fighting for a fair market and are now getting attacked for doing so.

I said this on Twitter earlier, it’s going to take every single one of us to make change happen. And although it might not seem like it at the moment, we’ve made quite some progress already.

We’re on the radar now and our voice is being heard. I believe that those who aren’t in favor of a fair market should be looked at very closely.

David Scott Gets Intimidated By The Power of Social Media

I’m not sure if David Scott knows this or not but social media is not a new concept and it’s certainly not going anywhere any time soon.

That is unless Mark Zuckerberg halts the spread of powerful information again, smh.

Social media platforms have allowed communities and people to have a voice they couldn’t otherwise have had decades ago.

When the people begin to make noise for change, they are often ridiculed or labeled as conspiracy theorists as a way to shut down the voice.

Billionaire Grant Cardone just mentioned this on Twitter following the insider scandals occurring within our financial systems.

The truth is, it’s time to pass the torch.

David Scott wants to make it hard for ordinary people to invest in the stock market. This is something I’m 1000% against for.

I believe everyone should have the right to participate in a fair market where they can invest in their favorite companies and also create generational wealth.

FrankNez teaches people how begin investing in both stocks and in crypto. To take this away from the people is blatant manipulation and tyranny in it’s rawest form.

You can’t get mad for losing millions of dollars in the market and then say you want to create a bill so that no one else can play against you. The world doesn’t work that way.

You can see chairman of the SEC Gary Gensler almost pull a smile from hearing David Scott speak. I think this is a clear indication that the SEC has no intention in letting this happen.

What Do You Think?

Do you think Gary Gensler will allow this narrative to become a reality? Let me know in the comment section below or vote on this Twitter poll.

Not a lot of people have faith in Gary Gensler or the SEC but can you imagine the heroes they’d be if they liquidated short sellers and actually began protecting retail from market manipulation?

They would make history!

That’s the kind of power and legacy our leaders have at the moment. The new world we live in rewards its heroes and honors them.

Gary Gensler and the SEC have two very important paths they can choose from. My advice to them? Have courage.

So instead of bashing Gary Gensler and the SEC, I believe we should be encouraging them instead. Because courage isn’t easy, it’s difficult.

It takes courage to stand up for something, it takes courage to make a difference, it takes courage.

Insider Trading Is The Real Problem, Not Retail

Representative David Scott only put a magnifying glass on himself. How about we tackle insider trading and injustices within our own financial system first.

Let’s start at the root. Fed’s Kaplan and Rosengren have already been caught in a scandal regarding insider trading. Policy makers should not be allowed to participate in the markets.

This gives them way too much leverage and allows them to bend rules in their favor. Ladies and gentlemen, this is the real problem – not retail investors.

And those against a fair market know this. But greed doesn’t care about fair. Greed cares about greed.

Gary Gensler knows that prohibiting people from participating in the markets is a direct violation of his duties to serve the people.

I don’t see the chair of the SEC backing up rep. David Scott on his delusional vision of implementing jail time for discussions about stocks on social media.

How are you going to put millions of people in jail for voicing their thoughts and opinions on social media? Guys, I know you can’t see me but I’m facepalming right now.

Let’s not attack David Scott though, the poor man is lacking something significant in his life. No person with their head screwed on right thinks of taking the rights of another human being.

Let’s address the issue civilly.

Can The Government Stop Retail Investors From Trading Stock?

Absolutely not. Any bill preventing the people from trading in a public company is a direct violation of the people’s freedom.

Capitalism is the American way. We have to right to create businesses, establish and donate to charities, as well as support and invest in innovative companies that serve us as consumers.

Limiting who can and can’t trade in the stock market would cause an uproar. CEO’s and influential entrepreneurs thrive from investor relations.

Businesses and investors alike would not support this. Preventing the people from a fair market is un-American.

Americans and our allies will fight for our freedom whether corrupt politicians like it or not. It’s what our founders have done and it’s the reason why the people will always win.

franknez.com gary gensler news

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Here’s Why Hedge Funds Fear Retail Investors Right Now

Retail Investors AMC Community
Retail Investors VS Hedge Funds

Retail investors have never been this invested in the markets before. A lot of you have been increasing your knowledge database all year.

We used to park our money in long term index funds or pick some of our favorite companies to invest in and that was it. We let the media decide how to move the markets and we made decisions based on that.

However, ever since investing in momentum stocks such as AMC and GME stock, retail investors have never had a chance at a fair market; until now. The AMC and GME community are changing everything.

From deciding the worth of a company, to being a driving force that has the ability to save industries, hedge funds have awoken a sleeping giant.

franknez.com

Welcome to Franknez.com – I’ve been doing a lot of reflecting on the growth and impact of our community recently. Here are 5 reasons why hedge funds fear retail investors right now.

Lets get started!

#1. Knowledge Is Getting Spread

More retail investors have joined the markets and are getting a dose of knowledge every day. If you really think about it, more people have begun investing in the stock and crypto markets than ever before.

People are tired of not doing something to change their current positions in life. Be it monetary for most. Retail investors are in the markets and taking life changing measures to change their financial situations.

And I’m proud of you for that because that’s what it’s going to take to make it out there. Keeping your money in BofA or Wells Fargo isn’t going to multiply your money.

So kudos to you for taking calculated risk and allowing your money to work for you. And if you haven’t shown a friend or family member how to invest in the markets yet, I’m going to leave a link at the end of the article that you can send them so you can save your time from showing them how.

Meme stocks changed the markets in the way that it brought a ton of new retail investors to the game. But what happened next shocked hedge funds. The knowledge of malpractice in the markets spread and now we’ve created a massive movement towards having a fair market.

Knowledge in our community has spread and can continue to spread like wildfire. This is a massive threat now more than ever to hedge funds illegally shorting the companies we’re betting on.

#2. Naked Shorting & Dark Pools Have Gone Mainstream

What was once denied and hidden to the public for so many years has now become public. Naked shorting and dark pools have gone mainstream through platforms such as CNBC and FOX News.

Our community has magnified the cancer in our markets and the spotlight is now directed towards these problems.

We’ve forced the media to cover our story. We’ve forced change to an extent and we must keep making noise.

Naked shorting and dark pool trading must be stopped. I’ve seen many of you tag Gary Gensler and the SEC on Twitter. Keep it up.

Believe me when I say they see our concerns and they see your comments. Let your voice be heard even when it feels like it isn’t being heard. I hear you, the community hears you, and believe me they hear you too.

#3. We’re Putting Real Pressure On Regulations

We know the SEC hears us because they’ve been pushing regulations out although hedge funds continue to find a way around them.

However, we know that the SEC is only making themselves seem like they are doing something, so they don’t look complacent in the eyes of mainstream media.

But we know nothing has really changed. In fact, hedge funds are fighting the SEC on delaying liquidations and margin calls right this very moment.

OCC Requests To Delay Liquidation

Retail investors on Reddit recently came across a proposal sent to the SEC by the OCC (Options Clearing Corporation) to delay liquidation in short and long positions.

OCC request to delay liquidation
OCC Request To Delay Liquidation

Here are the rules the Options Clearing Corporation (OCC) is requesting:

  1. Rule 1104(b) – authority to delay the immediate liquidation of a suspended Clearing Member’s margin deposits and to use such deposits to borrow or otherwise obtain funds from third parties
  2. Rule 1106(e) – authority to determine not to close out a suspended Clearing Member’s unsegregated long positions or short positions in options or BOUNDs, or long or short positions in futures
  3. And Rule 1106(f) – authority to execute hedging transactions to reduce the risk associated with any collateral or positions not immediately liquidated or closed out pursuant to Rules 1104(b) and 1006(e)

We have the power to call out the SEC and Gary Gensler and say we do not approve this as it’s a violates the protection of retail investors from manipulation in the markets.

Only you can do that. We need to ensure that hedge funds get their positions liquidated for AMC and GME to squeeze. Squeezing hedge funds from their positions will do more than make retail investors rich, it will create real change for future investors.

We have the power to create a fair market. All we have to do is be proactive about what we want.

You can read the rest of the incredible DD on r/superstonks here.

#4. Hedge Funds Continue To Eat Millions of Dollars

For every day you hold, hedge funds shorting AMC and GME stock continue to face devastating losses.

I get it, red days aren’t the most exciting. And seeing the manipulation occur in front of our own eyes doesn’t make matters better.

But know this. You holding your stock is causing our adversary so much money that they’ve become so desperate to the point they are asking the SEC for delays on liquidations.

Community, I think we’re getting close.

We are crushing it!

Why Are Hedge Funds Delaying The Inevitable?

They are trying to wear you out. Patience is difficult, I know. By delaying liquidation, they chisel away at retail investors with low convictions.

These institutions have been playing a game of psychology with us all year. They’ve even used AI technology to predict retail’s moves. Their technology can’t give them proper data when all we’re doing is buying and holding the stock though.

This strategy has been our biggest advantage and I’m confident in saying it’s going to pay off.

#5. Retail Investors Are More Intelligent Than They Thought

I think it’s fair to say retail investors have been greatly underestimated. We tarnished reputations from $0.01 expert analyst predictions, denied our table to a two-faced Jim Cramer, and have made the average person a lot of money on paper.

I guess dumb money isn’t so dumb after all.

Our community has been doing the homework every day for almost ten months now and will not stop advocating a fair market.

This historic moment will never be forgotten. You reading this, yes you; have more power than you could ever imagine.

I’ve Never Said This…

There’s something I’ve been wanting to get off my chest for quite some time now. And I think I’m ready to say it now..

I’m proud of you.

I’m proud of you for staying grounded, for shunning negativity, and for sharing valuable content and data with the rest of us.

I’ve used my platform to protect the community, share the knowledge, and to communicate with you. But ultimately, it’s you who’s made a world’s difference, not me.

Your courage is moving mountains! And that’s why I love this community. Your courage has given me strength when I’ve needed it too. So thank you for simply being you.

Franknez.com

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