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Saturday: The Day Brokerage Houses Throw Clearing Firms Under the Gamestop Bus
Vanity ^ | 1/30/2021 | RinaseaofDs

Posted on 01/30/2021 7:09:35 AM PST by RinaseaofDs

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To: SDShack
Read this (WARNING - SERIOUS EYE GLAZING OVER MATERIAL!)

SECURITIES AND EXCHANGE COMMISSION 17 CFR PART 240
[Release No. 34-58774; File No. S7-08-08]
RIN 3235-AK06 “Naked” Short Selling Antifraud Rule
AGENCY: Securities and Exchange Commission.
ACTION: Final rule.
SUMMARY:
The Securities and Exchange Commission (“Commission”) is adopting an antifraud rule under the Securities Exchange Act of 1934 (“Exchange Act”) to address fails to deliver securities that have been associated with “naked” short selling. The rule will further evidence the liability of short sellers, including broker-dealers acting for their own accounts, who deceive specified persons about their intention or ability to deliver securities in time for settlement (including persons that deceive their broker-dealer about their locate source or ownership of shares) and that fail to deliver securities by settlement date.

https://www.sec.gov/rules/final/2008/34-58774.pdf

41 posted on 01/30/2021 8:41:59 AM PST by BiglyCommentary
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To: BwanaNdege

How about Confederate money?😁


42 posted on 01/30/2021 8:43:20 AM PST by BiteYourSelf ( Earth first we'll strip mine the other planets later.)
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To: SDShack
give the hedgies a wedgie

Love it, give them an atomic wedgie!!
43 posted on 01/30/2021 8:43:26 AM PST by The Louiswu (HOLD ON GME)
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To: RinaseaofDs

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.


44 posted on 01/30/2021 8:44:32 AM PST by Justa (If where you came from is so great then why aren't Floridians moving there?)
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To: RinaseaofDs
Today Webull is throwing ETC under the bus

They were wobbling and worrying about falling down ...

45 posted on 01/30/2021 8:45:07 AM PST by x
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To: CodeJockey

To what end? Your trying to force TD Ameritrade to charge me a fee for every transaction. Why?


46 posted on 01/30/2021 8:48:04 AM PST by Lurkina.n.Learnin (Beware the media industrial complex )
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To: Rockingham

“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.


47 posted on 01/30/2021 8:48:08 AM PST by aquila48 (Do not let them make you care! Guilting you is how they control you. )
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To: BiglyCommentary

How do High Frequency Traders get around the +3 in that equation?


48 posted on 01/30/2021 8:50:42 AM PST by Lurkina.n.Learnin (Beware the media industrial complex )
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To: CodeJockey
There are no fees for trading at Ameritrade. Wonder how they’ll like that.

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.

49 posted on 01/30/2021 8:54:02 AM PST by BiglyCommentary
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To: Lurkina.n.Learnin
How do High Frequency Traders get around the +3 in that equation?

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.

50 posted on 01/30/2021 8:56:33 AM PST by BiglyCommentary
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To: SDShack

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”.


51 posted on 01/30/2021 9:01:42 AM PST by FrankRizzo890
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To: Lurkina.n.Learnin
This SEC rule talks to some of what you are asking about. (Warning, another eye glazer)

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

52 posted on 01/30/2021 9:03:38 AM PST by BiglyCommentary
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To: BiteYourSelf
How about Confederate money?😁

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.

53 posted on 01/30/2021 9:29:02 AM PST by BwanaNdege ( Experience is the best teacher, but if you can accept it 2nd hand, the tuition is less!)
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To: RinaseaofDs

“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


54 posted on 01/30/2021 9:34:13 AM PST by BwanaNdege ( Experience is the best teacher, but if you can accept it 2nd hand, the tuition is less!)
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To: Lurkina.n.Learnin

They all have margin accounts.....borrowed money. I traded with a margin account for many years.


55 posted on 01/30/2021 9:40:09 AM PST by sheana
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To: aquila48
True enough, but, almost always, automated systems first identify whether there are enough funds or assets on account or tendered in order to complete a transaction. The larger point is that while most transactions go through on that basis and the automated systems are tireless and easily expanded, human employees still remain essential in the clearinghouse and in back office operations. They are limited in numbers and in work hours. By regulation and practice, such human employees have to troubleshoot issues. Often, what looks like a default may be due to a simple human error that can be corrected with a telephone call or email or review of account records and processing routines.

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.

56 posted on 01/30/2021 9:41:04 AM PST by Rockingham
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To: jeffc

“...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.”


57 posted on 01/30/2021 9:46:47 AM PST by moovova (Yo GOP....we won't forget.)
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To: jeffc

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.


58 posted on 01/30/2021 9:55:29 AM PST by Bogey78O (So far so good.)
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To: trebb

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.


59 posted on 01/30/2021 9:56:42 AM PST by Bogey78O (So far so good.)
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To: FrankRizzo890

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.


60 posted on 01/30/2021 9:56:55 AM PST by SDShack
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