Posted on 01/30/2021 7:09:35 AM PST by RinaseaofDs
https://www.sec.gov/rules/final/2008/34-58774.pdf
How about Confederate money?😁
Lots of BS out there.
IMO the hedge funds are panicked. They will band together to crash the market so they can blame Reddit WSB community. They want to somehow ban or restrict populist Bear Traps of their short positions. Retail investors got wise to their manipulation before they could take profits and the hedge funds got burned.
The hedge funds are unwinding long and short positions and want to blame retail investors. The media will go along with it. They all stick together.
They were wobbling and worrying about falling down ...
To what end? Your trying to force TD Ameritrade to charge me a fee for every transaction. Why?
“The clearinghouse is there to avert and resolve those back office issues by gathering facts and applying skilled human judgment so as to resolve problems and claims quickly and fairly.”
It’s considerably more than just applying “judgement” - it is their job to insure that both sides of the transaction have the necessary funds/assets (plus margin) to cover the transaction. They’re like the escrow company in RE transactions.
How do High Frequency Traders get around the +3 in that equation?
They'll hate it but those are all factored in when they ran the numbers on the no fee commissions. It's like the loss leaders on the front page of the super market flyer. Only me and a few others will bother to pick off just the loss leaders and then walk out the door. The other 50 customers will also pickup lots of high margin stuff.
For every 1 share $5 trade where they make next to nothing like yours, there will be 1000 others trades where they make a lot, N number of shares X ECN bid-ask scalps under your bid-ask price + X order flow payments.
Most are members of the exchange, have seats, and the rules are not the same for them. Same as for market makers, totally different rules than for Joe retail.
As I understand it, which isn’t that extensive ATM, you can get there like this. I loan you a share that you are going to sell, but instead of selling it, you in turn loan it to someone else. So, it’s 1 “real” share that shows up as 2 shares being shorted. So that extra 40% in the 140% represents shares that have been “double-loaned”.
SECURITIES AND EXCHANGE COMMISSION
17 CFR PART 240
[Release No. 34-63241; File No. S7-03-10]
RIN 3235-AK53
Risk Management Controls for Brokers or Dealers with Market Access
https://www.sec.gov/rules/final/2010/34-63241.pdf
Oh, I've got BALES of that stacked in the attic, next to the barrels of Wooden Nickles.
I am short of Zimbabwe dollars, in denominations of $100 million and up. Venezuelan pesos also might do.
“At the very moment they began to sing and give praise, the Lord caused the armies of Ammon, Moab, and Mount Seir to start fighting among themselves. The armies of Moab and Ammon turned against their allies from Mount Seir and killed every one of them. After they had destroyed the army of Seir, they began attacking each other. So when the army of Judah arrived at the lookout point in the wilderness, all they saw were dead bodies lying on the ground as far as they could see. Not a single one of the enemy had escaped.”
II Chronicles 20:22-24
They all have margin accounts.....borrowed money. I traded with a margin account for many years.
Here are two securities dealer back office examples in the "we sent the check but it never arrived" department. After a change in the back office mail processing routine, there were several instances of missing checks left in envelopes. To remedy this, every days' accumulation of supposedly empty envelopes had to be filleted open and inspected. About once a month, a missing check was found. In other cases, managers in the local Fed-X or UPS or US Mail processing facility had to be called to "check the belts and bins" for missing envelopes. Several times this resulted in missing express envelopes being found.
“...there are Leftists looking at this to make it so, for more control of everything.”
Come on gang...sing along with me:
“Never let a crisis go to waste.”
There is a politics to it but it’s not of the ideological sort. This is more politics of criminal enterprises than the usual sort.
Only retail purchasers on some platforms were stopped from buying. The people buying to hold for a rally were effectively neutered to keep the stock down.
If that is the case, where you borrow a share, then loan it out, creating a second ‘ghost’ share, then that should be illegal because no one is in actual possession of a the ‘ghost’ share. That is nothing but PURE market manipulation. Kind of like how wallstreet ‘securitized’ MBS securities and leveraged them and sold pools of them. When sub-prime caused the MBS market to collapse, it took down the whole financial system and economy. This makes sense on how you get to 140% short, but should be illegal as hell.
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