Chris Tate Comment On Regulatory Notice 21-19
Please investigate criminal activity such as naked shorting..... into any hedge funds that are illegally affecting a market of any given stock.
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Please investigate criminal activity such as naked shorting..... into any hedge funds that are illegally affecting a market of any given stock.
As a retail investor I believe that the provably widespread practice of naked shorting dilutes the share pool of companies that I believe in which artificially lowers stock prices. It is a method that predatory short hedge funds use to drive stock prices down, rather than allowing the market to engage in true price discovery. This causes companies which might otherwise be beneficial to society to shut down, illegally lowers my investment returns, and undermines my faith in the market.
I 100% support broader and more detailed reporting on short sales. This information would lead to a fairer market through transparency and allow all parties to better understand the marketplace.
As a retail investor, I am concerned about the fairness of the current financial system. Having read many theoretical posts on r/Superstonk about the economy and doing my own research, I believe that more regulation on shorting is necessary in order to avoid the unfair devaluation of companies and protect smaller companies from its effects. In particular, more needs to be done about Fail-to-Delivers and synthetic shares to reduce the power that Market Makers and Hedge Funds have in determining the value of a stock on the market.
Hello FINRA, This is my comment for 21-19, regarding short positions. As I see it, the current US market is full of fraud which preys on the working classes, with our regulatory agencies being complicit. They are complicit through their inaction, with years of unchecked fraud, and market manipulation. It has been discovered that naked short selling by large hedge funds like Citadel and Susquehana has been allowed to happen with impunity.
This needs quick implementation so added transparency can give investors faith in FINRA as a reporting agency.
There is a lot covered here, it is obvious that some steps toward better transparency are at work. The simple fact of the matter is that there systemic issues with the creation of shares to borrow based on future volumes, failures to deliver, and shorting in general. While appreciated, and needed, the solutions to these do not lie in the resolution of transparency alone. Removing the capability to generate future transactions to borrow from, use for offsetting failed to deliver positions, and in general affecting the stock price negatively needs to be resolved.
Short interest need to not be self reported. There should be investigations every day or at least weekly to see how these hedge funds and market makers are influencing stock prices. Naked shorting is a disgusting practice that has caused economic crashes in the past. We need to learn from our past mistakes. The formula for calculating short interest needs to be fixed to show the actual number of short contracts as well.