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I'm not the right person to ask, I'm not very finance knowledgeable. But here would be my demands, starting with most likely to possibly happen: - Total short
by bo1024 6y ago
I'm not the right person to ask, I'm not very finance knowledgeable. But here would be my demands, starting with most likely to possibly happen:
- Total short interest in every stock updated daily, both settled and in progress.
- (edit) report daily fails to deliver (not just a running total), and published at T+2 rather than every couple weeks.
- For every trade, publish whether it's a short sale or sale of an owned asset.
- SEC tracks each companies' daily borrows and fails to deliver, with consequences.
- Every short sale must be submitted with a borrow agreement from someone who has already agreed to lend you the shares. SEC checks these are not fraudulent or frequently cancelled.
- Everyone should have access to the trading data that you currently need a Bloomberg terminal for.
- Every share has a serial number. Every trade must include a list of serial numbers of every share in that trade, with proof that you own or were lent those exact shares.
Like I said, I"m no expert, so responses welcome.
- bo1024 6y agoIf I could add, reddit has a ton of conspiracy theories floating around about this stuff, e.g. "shorts haven't covered because X". They're very hard to refute or even investigate as a layperson because I cannot find the data or it's not published at all. So this lack of transparency doesn't just tilt the playing field, it allows misinformation to spread more easily.
- bo1024 6y agoOh, I thought of another (not exactly transparency): - If you lend out your shares, you can't "sell" them until you've recalled them and had them delivered to you. If the float is X, then there shouldn't be more than X shares available to sell at any given time. In the current system shorting increases apparent supply which devalues the stock.