The retail investor community is calling FINRA corrupt after numerous scandals have surfaced.
FINRA has received more backlash after freezing the trading of MMTLP (Meta Materials) prior to its spinoff.
But that’s not all.
During an interview with SEC Chairman Gary Gensler, he tells ‘We The Investors‘ that he believes the SEC should have the ‘Best Execution Rule‘, not the self-regulatory organization, FINRA.
More on that below.
Here’s the latest happening in the retail community.
Join the newsletter to receive weekly market news and updates straight to your inbox.
Who and What is FINRA?
FINRA stands for the Financial Industry Regulatory Authority and is a self-regulatory government organization that oversees U.S. broker-dealers.
The organization contains records of every trade made available intraday, including that of naked short sales.
FINRA requires firms to be able to meet their short sale requirements as well as have a process to close out fails to deliver within their required timeframes.
However, they’re the open window that allows these manipulative strategies to occur in the market.
FTDS (fails-to-deliver) are mounting up every month according to SEC data, and FINRA is unable to get firms to close out these obligations.
The retail community is calling it foul play, alleging the possibility of lobbying within the self-regulated organization.
FINRA’s justification towards FTDs say that firms face challenges related to miscalculations.
FINRA is also responsible for where retails orders are being executed, per the ‘Best Execution Rule‘.
Chairman Gensler says this is too important for it to not be handled directly by he and his team.
Let’d dive right into it.
What is the ‘Best Execution Rule’?
FINRA is responsible for outsourcing ‘best execution’ with the best execution rule, according to SEC Chairman Gary Gensler.
This means the self-regulatory organization has the power to execute orders in off-exchange and dark markets for ‘best execution’ and ‘price discovery’.
But Gary Gensler says that this rule is too important for it to not be in the SEC’s court.
The Chairman told ‘We The Investors’ that he does not agree that sending 60%-80% of certain stock to the dark markets is the best way for FINRA to act on price discovery or that he would consider to be ‘best execution’.
He says that to establish price in a lit marketplace, a competitive marketplace, that brings more buyers and more sellers to the marketplace will tend to have more support.
But retail investors remain critical of the Chairman despite his direct communication with the retail community in December.
Is FINRA corrupt?
I’d love to hear your thoughts in the comment section down below.
You can follow me on Twitter | Instagram | LinkedIn
About The Author
FINRA is corrupt to its core. What they did and are currently doing to small caps is flagrant corruption. They know naked shorting is happening, and they have turned a blind eye, or they’re complicit. Unless they have a combined IQ of 50, I’d suggest the latter. Fuck you Finra
The only question Gary should be asked is how do you want your last cup of coffee at the SEC? The editor should have added that Gary’s hypocrisy outshines his “best execution” blah blah blah by voting down true transparency rules! #SECisaJOKE #FIREGary
#FINRAFRAUD
People on the board of FINRA, are the same people in charge of brokers shorting securities. The players are in charge of referring the games…
Of course FINRA is corrupt. They are self regulated organization of the US financial markets… Keyword Self regulated!! The governing body of the SEC can barely control them..The advisory board is a huge conflict if interest. It’s easy to see that it is corrupt.
What role did finra have in robin hood halting trades? How far back does their crooked play go?! From GameStop stopping to mmtlp ending trade on dec 12(according to their own written letter) they change the rules midgame for the sake of “national security” or should we say citadels or blackrocks security.. it’s not naked shorting or counter fitting. It’s iou’s and synthetic shares. They would tell you there’s a difference. Like good sheeple we quietly go away
Of course FINRA is corrupt. Who doesn’t know that? What we need is for the AMC CEO to do better at protecting the people that saved his company from bankruptcy. Much better!!!!
I am from Singapore. Your US stocks market is indeed corrupted if shorts can dont cover especially for $mmtlp. Many other tickers have FTDs outstanding too. If this is not corrupted what is it? I am out of here until $mmtlp let us trade for the last 2 days for shorts to cover and then we decide if we wanna sell or not. Our media is going to report this widely if nothing is done. If miscalculations, then do it right now!
100% CORRUPT AND WE HAVE THE PROOF. https://youtu.be/1PiOmpWK-bs
MMTLP = FINRA Fraud
They ARE corrupt, no one on the FINRA bod actually represents the interests of retail investors, and there is a major conflict of interest problem among many many others.
blah,blah,blah, it’s all BS! The only way for all of this endless corruption is for the whole house of cards to come crumbling burning down like none of us have ever seen before.
With this administration I don’t think we’re far off from that time coming. In kind of a sick way I hope it happens while I’m still alive so that I can witness the well earned righteous destruction of evil pigs. Now that’s “The Great Reset” “The New World Order”
Agreed.
Let’s start a discussion! Leave your thoughts below.