Tag: Stock Market Manipulation (Page 2 of 12)

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

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

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

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

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

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

Here’s the latest market news.

Franknez.com

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

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

And can the SEC suspend dark pool trading?

Let’s dive right into it.

Gary Gensler on Dark Pools via Bloomberg

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

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

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

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

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

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

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

Market Makers Have Been Stealing from Retail Investors

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

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

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

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

Will these financial institutions be held accountable for financial treason?

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

Will PFOF get banned in the U.S?

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

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

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

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

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

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

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

These strategies include PFOF and high frequency trading.

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

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

Retail Wants Orders Processed Through the Lit Exchange

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

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

Retail wants orders processed through the lit exchange.

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

#MarketMakersDontHaveConsent

Can the SEC Suspend Dark Pools?

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

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

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

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

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

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

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

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

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What Happened to Shares of Next Bridge Hydrocarbons?

Market News Daily: What Happened to Shares of Next Bridge Hydrocarbons?
Market News Daily: What Happened to Shares of Next Bridge Hydrocarbons?

It’s been more than two months since investors have not received their shares of Next Bridge Hydrocarbons.

The last day to purchase MMTLP shares (and be eligible for the dividend) was Dec. 8, 2022.

MMTLP’s final trading day was Dec. 12, 2022.

The distribution date of the private Next Bridge Hydrocarbon shares was Dec. 14, 2022.

More than two months later and shareholders have not received the proposed preferred shares.

The company’s preferred shares that traded under MMTLP have been deleted as part of the highly anticipated Next Bridge Hydrocarbons spinoff.

Before that, on Dec. 9, the Financial Industry Regulatory Authority (FINRA) halted trading ahead of the final day on the market for MMTLP stock.

Next Bridge Hydrocarbons is not a publicly traded company, despite being spun off from one.

Investors who held MMTLP stock on Dec. 13 were expecting to receive shares of the private company.

Next Bridge Hydrocarbons on MMTLP Halt

Market News: Next Bridge Hydrocarbons stock news and updates.

Next Bridge Hydrocarbons released the following statement regarding the MMTLP halt.

“We recognize that some of our shareholders who owned Meta’s Series A Non-Voting Preferred Stock prior to the Spin-Off might have been affected by FINRA’s halting of the trading in that stock while the Company was still wholly owned and controlled by Meta.

The current board and officers of the Company have no information from FINRA regarding the Trading Halt other than the information in the public notice published by FINRA announcing the Trading Halt.

Further, FINRA did not provide any advance notice to the Company or Meta prior to its initiating the Trading Halt.

While we were not involved in the Trading Halt, we certainly empathize with anyone adversely affected by the Trading Halt and are assessing the matter.

The Company believes that our primary means of delivering shareholder value is to develop our interests in the Orogrande Basin, and we remain focused on this objective.”

In regard to what happened to shares of Next Bridge, the company said the following:

“AST has distributed all shares of our common stock related to the Spin-Off –either directly to any stockholders that held their shares directly registered with AST or to our shareholders’ bank, broker or nominee representatives.”

About Next Bridge Hydrocarbons

The Company is an independent public reporting energy company engaged in the acquisition, exploration, exploitation and/or development of oil and natural gas properties in the United States. Our primary focus has been the development of interests in an oil and gas project consisting of 134,000 contiguous gross acres we hold in the Orogrande Basin in West Texas in Hudspeth County, Texas. In addition, we have minor interests in the Eastern edge of the Midland Basin in Texas, and two minor well interests in Oklahoma. Please visit www.nextbridgehydrocarbons.com for more information.

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Market News Today - Next Bridge Hydrocarbons stock update
Market News Today – Next Bridge Hydrocarbons stock update.

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The SEC Green-Lighted Naked Shorting of IPOs in 2015

SEC Naked Shorting
Market News Today: The SEC green-lighted naked shorting in 2015.

Forbes published a piece surrounding Uber’s ‘troubled’ IPO stating that the SEC green-lighted naked shorting of IPOs in 2015.

“A curious thing happened during Uber’s troubled initial public offering last week: naked short selling of UBER shares by the banks involved in placing Uber’s IPO, according to several sources who confirmed this to CNBC.

Normally, naked short selling is illegal.

But it was legal in this case, and it gave the banks a chance to profit–as investors lost money–when the IPO traded down 18% in its first two days.

Naked-shorting of IPOs by banks, which the SEC green-lighted as recently as 2015, has changed IPO market dynamics by altering the relative power between banks, issuers and investors. 

To the detriment of investors, banks now have less fear of incurring major losses from pricing an IPO too high because banks now have a tool (naked shorting) to protect their downside risk.”

Forbes said that thanks to the SEC’s explicit statement allowing naked shorting during IPOs, banks have a chance to win regardless of what the IPO is priced at, a fear they had prior to getting the green light on naked shorting.

In a space call with Genius Group ($GNS) CEO Roger Hamilton, a user had stepped up to question the proof of naked shorting discussed about in sort of media or case.

As you can imagine, speakers on the panel were quick to give the user the information they lacked to research in the first place.

But it’s there, and this is just one case on the proof of naked shorting in the market.

GNS Shares Plummet After IPO

2023 GNS #NakedShortsWar.
2023 GNS #NakedShortsWar.

Genius Group CEO Roger Hamilton said he suspected naked shorting was happening in his company stock after shares had gradually plunged after their IPO date.

Roger Hamilton has been leading the fight against naked shorts by not only raising awareness on social media but also by taking legal action.

The company just launched phase 2 of their legal battle against naked short selling.

One of the topics discussed in the space call with Roger was of dual listing using the blockchain.

My thoughts on the blockchain are that it provided accountability and less stress on investors when dealing with manipulative shorting tactics.

It’s still a very new innovation, especially when discussing a tradable blockchain exchange.

A great effort to fight naked shorting nonetheless.

“Naked shorting is impossible to do when securities are issued natively on a blockchain. Had Uber’s shares been issued on a blockchain rather than through legacy systems, banks simply would not have been able to issue more UBER shares than the quantity of shares outstanding. The price-suppressive impact of the naked shorting–however large or small it was in the Uber case–simply could not have happened,” said Forbes.

Related: Citadel Said in 2004 Payment for Order Flow Creates Conflicts and Should Be Banned

A History on Naked Short Selling

What is naked shorting?

Naked short selling, or naked shorting, is the practice of short-selling a tradable asset of any kind without first borrowing the asset from someone else or ensuring that it can be borrowed.

Naked shorting was enabled legally by UCC Article 8 in 1994, owing to a combination of two features: (1) indirect ownership of publicly-traded securities and (2) a special exemption that obviates the normal requirement that the seller prove in advance that it actually owns the property it is selling to a buyer.

“What we actually own is an IOU from our broker-dealer–a contractual right to the shares instead of the real thing. Your broker, in certain circumstances, has the right to conjure and sell you IOUs to more shares than actually exist,” says Forbes.

The US legal system made a policy decision to favor liquidity over solvency–to favor negotiability of securities over keeping accurate and timely records of who really owns what.

Patrick Byrne brought naked shorting to the attention of regulators but was ridiculed and eventually paid off with a winning settlement to lay low.

After the events of the ‘meme stock’ frenzy in 2021, retail investors came together and scrutinized the SEC, DTCC, and FINRA for allowing blatant market manipulation to occur.

Retail investors were momentarily prohibited from trading shares of AMC and GameStop due to liquidity concerns within several market makers and brokers including Citadel and Robinhood.

The DTCC waived billions of dollars in collateral to reset the game for the big players, cheating retail investors out of their money.

“The problem is that “overissue” of securities suppresses market prices. This is one of many subtle ways that value is skimmed from Mom and Pop investors in securities markets.” – Forbes.

Market News Published Daily

Market News Today: The SEC green-lighted naked shorting in 2015.
Market News Today: The SEC green-lighted naked shorting in 2015.

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

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

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


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How Do Hedge Funds Manipulate The Stock Market?

how do hedge funds manipulate the stock market.
Market News: How hedge funds manipulate the stock 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

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 Citadel’s 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.

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

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.

Related: GTII Pursues Legal Action Against Naked Shorts

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, GameStop, and other retail favorites.

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 any stock.

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.

Market News Published Daily

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

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

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


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Global Head of Operations at Citadel Has a Board Seat at DTCC

Market News: Conflicts of interest arise - #CitadelScandal
Market News: Conflicts of interest arise – #CitadelScandal

David Inggs is Global Head of Operations at Citadel and is responsible for all products across asset servicing, billing, cash management, clearing, and has a board seat at the DTCC.

The conflict of interest has raised big concerns amongst the retail investor community online as Citadel has been a leading and one of the biggest short sellers in the stock market.

On January 28th, 2021, The DTCC waived $9.7 billion of collateral deposit, limiting institutional losses and limiting retail profits during the ‘meme stock’ frenzy.

The organization allowed several naked shares to flood the market prior to the massive jump in share prices only to help financial institutions in the end.

Citadel and Melvin Capital who shut down last year, lost billions during the event.

Melvin was crippled throughout 2022 from its severe losses in GameStop the year prior.

Had the DTCC not stepped in, the hedge fund would have closed that same year.

“Anyone shorting AMC or GameStop is out of their mind. Wallstreetbets is too powerful, and trying to bet against them right now is just giving them more ammo”, said Jim Cramer.

Since the halt of ‘meme stocks’, the retail community has been uncovering a variety of conflicts of interest too big to ignore.

Who is David Inggs?

David Inggs DTCC

David Inggs is Global Head of Operations at Citadel and is responsible for all products across asset servicing, billing, cash management, clearing, Collateral Management, Reconciliation & Control and Settlements and is on the Board of Directors at the DTCC.

Prior to joining Citadel, David served as Chief Operations Officer of E*TRADE where he led operations globally across Trade Execution, Global Clearing, Middle Office and Shared Services, among other functions.

David spent most of his career at Goldman Sachs, where he was a Managing Director and held numerous leadership positions over the course of a decade, including Global Head of Clearing Operations and Head of Credit Default Swaps and Equity Derivative Operations.

David also worked at Morgan Stanley, where he served as an Executive Director and Head of Global Bank Loans, in addition to work in credit derivatives and collateral management.

The Global Head of Operations at Citadel has worked for every major criminal financial institution that has been too big to face serious consequences from fraud or market manipulation in the past.

Retail investors say this is market injustice and regulators are part of the problem.

Who is the DTCC?

The DTCC (Depositary Trust and Clearing Corporation) is an American post-trade financial services company providing clearing and settlement services to the financial markets.

The DTCC processes trillions of dollars of securities on a daily basis.

As the centralized clearinghouse for various exchanges and equity platforms, the DTCC settles transactions between buyers and sellers of securities.

The information is recorded by its subsidiary, the NSCC.

After the NSCC has processed and recorded a trade, they provide a report to the brokers and financial professionals involved.

This report includes their net securities positions after the trade and the money that is due to be settled between the two parties.

Clearing corporations such as the DTCC may receive cash from a buyer and securities or futures contracts from a seller.

The clearing corporation then manages the exchange and collects a fee for this service.

The size of the fee is dependent on the size of the transaction, the level of service required, and the type of security being traded. 

Investors who make several transactions in a day can generate significant fees.

This means every naked share that has been created on the ‘short side’ has been recorded and bypassed by the DTCC/NSCC, all for a fee.

Related: Robinhood and Citadel Colluded Night Prior to Trading Restrictions

GameStopped

DTCC GME
DTCC GME Halt – GameStopped.

A press released was published advising of the circumstances that occurred during the time ‘meme stocks’ were halted.

The DTCC waived $9.7 billion of collateral deposit requirement on January 28th, 2021, limiting institutional losses and limiting retail profits.

While AMC Entertainment stock was able to surge months after the January event, GameStop shareholders were strongly affected by the halts.

Retail investors say they feel cheated from regulators who failed to let the short squeeze play out in their favor.

Conflicts of interest such as David Inggs’ involvement with Citadel and the DTCC could be seen as a detriment to market integrity.

In an interview with ‘We The Investors’, SEC Chairman Gary Gensler said one proposal they’re looking at this year involves tackling conflicts of interest in the financial markets.

Citadel processes more than 40% of retail’s orders through PFOF (payment for order flow), and with a bias towards short selling, gives the hedge fund an incredible advantage over the common investor.

Should the involvement between both Citadel and the DTCC be considered a crime?

Or is this just a coincidence?

Leave your thoughts below.

Market News Published Daily

Market News - Stock market news

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

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

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


Franknez.com

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

  • Gain access to EXCLUSIVE FrankNez articles you won’t find here.
  • Become part of a private and safe Discord community, just for retail investors.
  • Get drawn at the end of the year for holiday giveaways.

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