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I find it odd all the comments are focusing on how stocks are exchanged, and not on the fact that the article suggests that brokers are straight-up lying about
by Judgmentality 6y ago
I find it odd all the comments are focusing on how stocks are exchanged, and not on the fact that the article suggests that brokers are straight-up lying about having shares.
> So their brokers commonly wink and do a “locate,” not a borrow, effectively saying, “Yes, I know where the share is and can buy it when the time comes to deliver.”
The evidence, unfortunately, is based mostly on past behavior and looking at the volume of FTDs.
> Citadel violated the Security Commission’s Reg SHO, the rule regulating short sales. On November 13, 2020, FINRA, the traders’ self-regulator, fined Citadel Securities $180,000 for failing to mark 6.5 million equity trades as short sales between September 14, 2015, and July 21, 2016. Citadel did not admit or deny the allegations but paid the fine.
It then goes on to explain how it's relatively easy to obscure this, but there's really no "gotcha" in this article. It's mostly a summary of how relatively weak enforcement is from the SEC, and that it seems very probable the guys with money have substantial influence over the regulators (the story behind this is actually pretty good in the article).
- cecja 6y agoAnd that is no problem for you? That people trade with stuff they don't have and don't deliver? But hey as long as the trade office just accepts it.
- Veen 6y ago> The evidence, unfortunately, is based mostly on past behavior What other evidence do you expect? It can't be based on future behaviour.
- ubercow13 6y agoIt would be good if there was enough public information available for people to deduce that it is happening in the present.
- danielbarla 6y agoI suspect they meant "inferred from past behaviour" as opposed to say, exposed in a set of emails definitively proving intent & collusion (which would be slightly more clear cut and hard-hitting).
- Judgmentality 6y agoYes, thank you. I could've worded that slightly better.
- orbz 6y agoHonestly $180k sounds like a steal compared to how much it would likely cost to investigate/deny this.
- TheCondor 6y agoIt is a very odd hangup. We’re there option holders that had contractual default?
- Judgmentality 6y agoSo, I want to be very clear, I am not suggesting this analysis is sound. However, it provides data to answer your question. https://wherearetheshares.com/ https://wherearetheshares.com/ In other words: yes.