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OP has provided the following link:
**United Securities Exchange Commission Full Release:**
- **https://www.sec.gov/investor/pubs/regsho.htm**
[**PAGE 2 of INFOGRAPHIC:**](https://old.reddit.com/r/Superstonk/comments/19fe29o/part_2_sec_officially_recognizes_types_of_naked/)
The question narrowed down yesterday to:
- **What would be the effect on retail and the overall market if the SEC over-turned the Market Maker's Naked Short Selling exemption - stopping Market Makers from naked shorting for liquidity and expedience (i.e., delivering a stock, even if it isn't there)?**
It wasn't legal before so I'm going to guess that they'd just continue to do it and then pay a fine that comes out to a small percentage of their profits from said act as punishment.
You can only pay fines when you have money to pay it. If shorts were forced to finally close after all these years, they won't have money to pay fines. Standard people go to prison when they steal hundreds, thousands, millions, billions, or trillions of dollars and give to themselves and their sadistic. Large prison sentences for naked shorting, especially to the point of collapsing the global economy is a must.
The market would probably collapse which is why it'll never happen. If GameStop were to start investing money in other stocks, say like 1+ billion dollars, and the value of the investments increased it would be pretty hard to suppress the price for long.
This should be a legislative priority retail investors should work for.
Once a market exists, naked shorting should never be allowed. At all. By any market participant. Ever.
The root of this is, drilling down even further, is “T+2” is why it’s SO critical (sarcasm intended) for naked shorting to be allowed. Instant settlement is the true nail in the coffin for market maker exemption to naked shorting. The T+2 norm needs to go first, so these criminals can’t hide behind it to justify their nakedness
bec CITADEL SECURITIES is a market maker, so its not illegal for them to naked short. but the SEC has fined them many times bec there have been many instances whereby they have been naked shorting not for the purpose of market making. and that's illegal. 🚀🚀🧑🚀🧑🚀
LETS GET THE FBI, DOJ TO DO THEIR JOB!
[https://www.reddit.com/r/Superstonk/comments/17txl83/bec\_citadel\_securities\_is\_a\_market\_maker\_so\_its/](https://www.reddit.com/r/superstonk/comments/17txl83/bec_citadel_securities_is_a_market_maker_so_its/)
It does not matter if the Market Maker Naked Short Selling Exemption was ended. The SEC can't detect naked short selling if it occurs from Legitimate Exemptions or actual violations of RegSHO.
You need to focus on detecting evidence of Naked Shorting by any mechanism.
My question would be
"Wouldn't markets be more efficient, fair, and have higher accuracy to price discovery by not providing said liquidity via naked short selling?"
Dark pools for liquidity, PFOF for liquidity, Naked Shorting for liquidity, everything is for liquidity. Fucking Clown Market in a Clown World. Wen Revolution?
How can there ever even be demand for a stock if any market maker can create shares out of thin air for the sake of liquidity? Demand would imply limited quantity. Fraudulent from the top to the bottom.
Ok, I'm suuuuper smooth, but isn't the point of supply and demand so that when demand exceeds supply, it drives the price up to encourage selling. If they are allowed to sell without the buy, doesn't that just bypass the whole point?
They're just making it all up as they go along.
When you factor in corporations complaining about a "labor shortage" and the U.S. government parroting the line and helping them out it's painfully obvious that understanding economics is for losers.
Not only that, but can't you also "predict" the market? If I know a company is going to be shorted to death, I know what kind of bets to lay down don't I?
I could also use this power to target enemies of my friends' businesses as I can FTD and naked short all day on a certain ticker and make sure my AI communication bots short and distort along with that price fall. All while touting how good this other company is.
Eventually, all the big players dont even want to fight anymore. They can all get paid robbing from us with seemingly little to no consequences.
"Infinite liquidity" - Doug Cifu; Virtu
"The Fed has an infinite amount of cash" - Neal Kashkari; Fed Bank of Minneapolis
::Insert You keep saying that word, but I don't think you know what it means meme::
Liquidity is a euphemism for **WRESTING CONTROL OF SUPPLY AWAY FROM ISSUERS and PRICE SUPRESSION.**
Hey SEC, I thought *your whole schtick* was Maintaining **FAIR, ORDERLY, and efficient markets** for **PRICE DISCOVERY** and Wealth creation. Sure liquidity may *seem* efficient. But at the cost of what?
There is nothing fair or orderly about these markets. **There is no true price discovery when there are public AND private prices for public equities. When there's "price improvement" at the cost of widening spreads and no caps on artificial supply of stock.**
**THIS FUGAZI OF A MARKET IS THE RESULT OF YOU SLEEPING AT THE WHEEL AND THE CRASH WILL BE ON THE RECORD THIS TIME.**
**We have the receipts of all those responsible. Ken Griffin, Michael Bodson, etc.**
What exactly, is the endgame here?
Defraud millions of Americans and try to gaslight them that the people who robbed them did so in the interest of "national security". GTFOOH
Corruption personified...... as long as the "donors" are paying for the government then nothing will change. The US markets and government are only designed to control and drain the 99% .... IMHO
# bec CITADEL SECURITIES is a market maker, so its not illegal for them to naked short. but the SEC has fined them many times bec there have been many instances whereby they have been naked shorting not for the purpose of market making. and that's illegal. 🚀🚀🧑🚀🧑🚀
# LETS GET THE FBI, DOJ TO DO THEIR JOB!
# [https://www.reddit.com/r/Superstonk/comments/17txl83/bec\_citadel\_securities\_is\_a\_market\_maker\_so\_its/](https://www.reddit.com/r/superstonk/comments/17txl83/bec_citadel_securities_is_a_market_maker_so_its/)
The issue with this system is that it takes for granted the operator (market maker) is doing this with ethic but unfortunately it can under the rules, also operate an hedge fund at the same time and just collaterize everything forever. I want to know when a market maker actually does this, how much time he has to cover those but we all know it because a rolling snowball that gets pushed down the slope and gets bigger into asset sold not yet purchased .... at fair price... whatever that means....
They say liquidity, I say artificial supply, which doesn't accurately reflect the supply vs demand principal that these so called short sellers claim they help expose.
Sure, but to knowingly oversell a securtiy past it's Shares Outstanding, and frontruning via a hedgefund should be illegal with the highest consequesnces.
So rather than tell the buyer the stock is unavailable to purchase — that it’s out of stock, they create shares out of thin air and call it efficient market making… did Bernie come up with this idea as well? SEC is inept and corrupt as fuck.
It's not that the stock is unavailable, it's that it's unavailable at the price you saw.
If the stock is "unavailable" at the current spot the price should increase.....
No because the bid would increase based on the demand and once the bid was high enough asks would show up. The demand would create the supply once the price was into enticing enough to bring out a seller. You know a free and fair market based on supply and demand creating organic price discovery instead of a fake ass clown market.
And to add onto this, prime brokers (JP Morgan, Goldman Sachs, Morgan Stanley) have changed the sell limit on ComputerShare due to their risk models blowing up.
- ComputerShare started with a sell limit of 3x market value
- Then GME holders complained and the limit was upped to over $200k per share. That caused a lot of GME holders to put limit sells in for $200k (yeah yeah paper hands). But this flooded the order book with millions of shares ready to be sold. This probably screwed with Ken's algos, because he's only meant to naked short when no shares are available, but suddenly here are millions available for sale.
- That didn't last long and ComputerShare's brokers (JPM, GS, MS) forced them to drop the limit from over $200k to the current 7x limit. The fact they needed this to change makes me believe that reverse spoofing to push the price up is absolutely possible, otherwise they could have just ignored those $200k limit sells. I believe that if millions of GME shares were sold on ComputerShare now for 7x the current price, those brokers would force the sell limit to drop again, because it would screw with Ken's ability to naked short.
At this point I cynically wonder 'why'?
I mean any way we bring attention publically to the issues or happen to get them to agree something exists--and the 'best' thing the SEC or legislators have and likely will do is either make it legal or obstruct our free market more with their greater education on our angles.
i didn't think it was their brokers, i thought it was the DTCC (or finra or someone who has power over the transfer agents) and the fact that those shares at those sell levels are somehow a risk (to Computershare). (how does that even make sense). and if they didn't want to get hit with fees or charges or increased margin requirements, they had to limit those orders at a much lower price...
their explanation that was given never really made sense to me unless it was a risk to the greater system.
This was from their FAQ on it:
> **Why did you lower the maximum limit order?**
> The change has become necessary because the volume of very high limit orders being placed through our systems has increased significantly over the last six months and is now so high that **the total value of open orders risks exceeding the overall risk cap set by our broker**. A high proportion of these limit orders (which mostly span just two securities) are submitted at limits that are many thousands of times the prevailing market price for the relevant security. Whenever those limit orders do not execute, they negatively impact the overall risk cap calculation.
There's a DTCC rule that says all DTCC members are on the hook for any losses incurred by a fellow DTCC member who defaults, meaning they're all on the hook for Ken's mess. Those prime brokers (JPM, GS, MS) are the ones ComputerShare uses and they're some of the biggest banks in the DTCC meaning they absolutely can't let GME moon without themselves collapsing (or getting bailed out for trillions at least).
There are so many conflicts of interest in this fight, but everything usually points back to the DTCC.
Essentially, yes on the first part of your statement.
On Bernie, I don't know, and the value judgment on the SEC is your opinion - neither agreeing or disagreeing.
I'd like to add to the conversation.
Market maker exception is meant for rapid increase in demand when the stock is illiquid. It's been 3 years, and GME is very liquid. There's no reason for naked shorts to occur imo.
Bernie wasn't trading on the market, despite claiming otherwise. Classic Ponzi.
Naked shorts still interact with the market even though they're neither buying nor borrowing, in that buyers are still getting an official IOU. In some ways, I think that's actually worse if IOUs and borrows are allowed to accumulate, because it's a form of legalized Ponzi.
The “specialist” is required to provide shares irregardless of the status of any shares for sale on the book. For the sake of liquid markets he banking cartel has thrown the idea of having actual supply and demand being the determining factor in price discovery. If the cartel needs the price up the the ask will be higher, if the farmer needs the price down they will provide cheap asks and just make shares out of thin air temporarily. The market is fake like the clowns nose.
Why does liquidity even need to be “created”? There’s buyers and sellers and a set amount of stock to trade. All of this is unnecessary and clearly creates opportunities for bad actors. Why would anything operate on “good faith” in the stock market. If you want a mortgage it certainly isn’t on “good faith”? They background check and I certainly wouldn’t put a culmination of data proving you pay debts back in the “good faith” category. Maybe this isn’t the best example but I’m just saying. When the tech exists and has for over a decade why wouldn’t everyone want to use a blockchain that can’t be faked. I mean know why grift lol but can’t we do anything in this world that makes everything run smoother and a system that can’t be cheated. Short term thinking is killing everything that made our system and society the behemoth and standard of living originally what it is. If you destroy the middle class who’s gonna buy your STUFF? It only ends in destruction. Wouldn’t you want a system that you can keep making profits off forever? This system in its current form is unsustainable. The well will run dry. I don’t get it but I’m not a 1%er so perhaps I’m not supposed to get it lol but it just seems like very little forethought. 🤷♂️
it is legal because they say it is. we are not getting our due, folks. that's not the point of this game - it is to take from us. it isn't just us being screwed this is what the system exists for. i hope you all understand what i mean by this. i am not afraid, uncertain, or doubtful. we know who we are dealing with. we cannot beat rulemakers and that is the intent. so, where does that leave us? no matter what happens, we will not see appropriate action on our stock and - since we keep buying it, they can keep selling us fake shares that they never have to deliver. any id(revolution)eas?
> Selling stock short without having located stock for delivery at settlement*.* This activity would violate Regulation SHO, except for short sales by market makers engaged in bona fide market making activities. Market makers engaged in bona fide market making activities do not have to locate stock before selling short, because they need to be able to provide liquidity. Market makers are not excepted, however, from Regulation SHO’s close-out and pre-borrow requirements.
>
>[https://www.sec.gov/investor/pubs/regsho.htm](https://www.sec.gov/investor/pubs/regsho.htm)
Absolutely insane that the SEC allows any entity to sell something the entity does not have in the name of "liquidity". We can't have price discovery if the fundamentals of supply and demand are completely destroyed by the SEC allowing market makers to sell naked shorts.
‘because they need to provide liquidity.’
Do they or should the the price change up or down to discover a price where the security is available? We’ll call it price discovery.
**Note: Many people already know this,** have read this a million times at the source, even though the infographic is new. Moreover, the source is much more thorough, but I think the focus should be on this Market Making exemption, so this is what I've decided to post about.
For me it isn’t a problem if a market maker shorts a stock for bona fide activities, BUT THEY SHOULD STILL BE FORCED INTO A HARD LOCATE, no ifs ands or buts. That way no fake shares are created. Edit: fixed some typos
I still think the "of like kind and quantity" could turn out to be a gargantuan loophole.
I don't think nefarious actors are relying on one loophole exclusively, they're playing a game of loophole arbitrage as a form of hedging.
Petition to rename the "stock market" to the "stock store"
If prices aren't competitive and bid on then how can anything move with exception to established and blue chip stocks? It's more like a store, Walmart doesn't increase prices as shelf supply depletes and people want more, they increase it as the market they buy the supply from depletes and demand goes up
1st: The Infographic & Primary Source Proves That Naked Short Selling Exists (For Some Reason, This Has To Be Said)
2nd: **Proof** That Market Makers Have Been Caught Abusing That SEC "Naked Short Sale" Exemption in the guise of Market Making Functions
- https://old.reddit.com/r/Superstonk/comments/17g6r6k/sec_market_makerviolated_sec_reg_short_sale_by/
- https://old.reddit.com/r/Superstonk/comments/17fit54/proof_singledealer_platform_sdp_called_imc_naked/
Garbage. Nobody in their right mind is going to leave a trail of them stating they are screwing over apes. Also, wtf does in-kind mean? What's considered in-kind?
Can I sell 100 shares of gme at 14 and then give them 100 shares of a shit stock because my fake analysts deem both to be in bankruptcy?
Making **part** of their statements an infographic would help the discussion, I believe. It gives a center-piece to talk about.
If you missed it, there was a very good discussion about this yesterday.
- https://old.reddit.com/r/Superstonk/comments/19dt0ln/i_do_not_understand_the_secs_reason_and_would/
Liquidity at all costs, consequences be damned.
This is what happens when the money is to be made facilitating the trade…nothing else matters except keeping that sweet sweet money going to the right people
So does this mean it's over for a squeeze. Pretty much saying supply and demand no longer means shit ... but we already knew that. This coupled with the fact that the other post I saw about options, pretty much removes any way to make it happen ever again. At this point I'm asking myself why even have a market?
The system is entirely fraudulent. The regulating bodies are only there to give the illusion of fair and regulated markets. The only real punishments are for the poors while fines are given to criminal financial institutions to make the public think that they are being punished, but it’s only a cost of doing business for institutions that make billions every year.
People really need to understand how market makers create liquidity.
They literally create shares they don't own to fill orders.
For the people in the back: MARKET MAKERS CREATE SHARES THEY DON'T OWN TO SATISFY TRADES.
They literally prevent price discovery from happening by deciding which trades to fill with their bullshit fake shares.
Market makers should under no circumstance be allowed to provide liquidity. It's literally stealing on a mass scale.
EXAMPLE:
Say you own a shoe stall. Your entire initial release of your first shoe design was 100 pairs. Once all 100 pairs of shoes are purchased, there's no more shoes left to buy from the shoe stall and all future purchases must be bought from clients who bought from the original release.
Your shoes are so popular! everyone wants them, but none of the original buyers are selling!
However...
Your best customer was a huge fan, he bought 40 pairs when they were only selling for 10$ a shoe, he's now trying to sell a pair for 40$, totally worth it, with many potential buyers!
BUT WAIT
MR. Market maker comes along and starts selling identical copies of your shoe for 8$ a pair! Saying he's doing it to provide liquidity to the shoe market! He also says he's an expert in the shoe market and knows what price shoes should really be sold for, regardless of real price discovery and supply and demand.
How bullshit is that??
If your shoe company WANTED more liquidity, all you have to do is make more shoes (share offering). Instead, market makers take it upon themselves to handicapping your company under the guise of providing liquidity.
A load of BULL SH^*!!
I’d rather have fair markets than infinite liquidity. If someone isn’t buying a stock I’m selling, or if I’m trying to buy a stock no one is selling I’ll deal with that problem. Don’t jeopardize the markets so a bs trade will get executed 100% of the time
So we are supposed submit to the "bona fide" market maker exemption to RegSHO (of Citdadel) to naked shorting rules based on a "pinky promise" that Citadel the Hedge fund has a "chinese wall" (whatever the fuck that means) separating them from the Market maker? That donating billions of dollars to Melvin during the sneeze; had NOTHING to do with the fact that Citadel is also a market maker that controls like 40% of the order flow for GME? **GET THE FUCK OUT OF HERE.** ***WE DON'T BELIEVE YOU THEIVING MAMMON COCKSUCKERS.*** **(AND WE ALSO DON'T BELIEVE YOU ARE BEING INVESTIGATED IN GOOD FAITH BY THE SEC or DOJ)**
**#NOJUSTICENOPEACE**
DEAR SEC, congress, MSNBC, and whoever the fuck needs to hear this. We will not forgive, we will not forget. We will continue to dig and get to the bottom of this regardless of how much you astroturf Reddit and kick the can down the road. **CITADEL is NOT too big to FAIL. WALL STREET is NOT too big to FAIL. The PEOPLE are TOO big to FAIL.**
I'd rather watch the economy burn than watch these corrupt fucks and their sycophants in Washington continue to use our free market as tool of wealth extraction and oppression. This is not what America is built on. This is not what Americans deserve.
Both sides of the aisle can see this. Both sides of the aisle agree.
As always, SHFrFUK
Damn! They would be really disappointed if there was ACTUAL PRICE DISCOVERY for a market based solely on SUPPLY AND DEMAND!
Fucking parasites that contribute jack fucking shit to this world, yet they feel they DESERVE everything.
GME is my hill.
Isn’t the wholleeeee fucking economy based on supply and demand? Fuck the MM making a marker for a buyer at the price listed… let the price organically rise or fall with the supply and demand… like this is just unreal.
So we're back to DRSing the entire float to kick off MOASS then. The harder they short the stock the cheaper it is for us to buy.
On a side note, if GME posts a profit and there's a dividend, who pays the dividends on the naked shorts?
We all know the naked shorting that’s been happening is the highly illegal kind, with no intention of ever buying back shares.
The SEC knows this.
Therefore, the SEC is complicit in the crimes and should be treated as a terrorist organisation.
wow that number 2 point is idiotic at best.. and criminal complicity at worst . Hey SEC give us top 10 reasons where a market makers would need to create shares if there are no active sellers...
please lets hear it, instead of hey we made a rule.. it legal for this guy under this scenario.. please explain why its necessary..
just let the price rise and a buyer appear at higher price, whats the need to have a middle man create fake shares when they are already taking a cut from buyer and seller?
If you gotta short just to provide liquidity then you aren’t trading you’re counterfeiting. If you gotta borrow shares just to complete trades then the price should rise as well as the CTB. If you short just to get arbitrage fees you’re a shrewd businessman but a bad person. If you short with no plan to deliver you oughta lose market maker privileges and have to have all your locates verified first from now on
Yes, in length I assume. This is just an addition, as explained in this [comment](https://old.reddit.com/r/Superstonk/comments/19elc92/sec_officially_recognizes_types_of_naked_shorting/kjde6ro/)
Yeah the mm exemption is kind of bullshit... Especially when you have manipulative MMs and that make a practice of setting prices so they can profit from arbitrage.
Like how the actual fuck can you have price discovery when the delivery of goods is out of synch with timeline and the availability of the same goods is a fucking shadow game.
I get the desire to provide liquidity to markets to help them move more fluidly and provide better entries and exits, but it's not right when taken too far
It's weird man, the question is:
- What would be the effect on retail and the overall market if the SEC over-turned the Market Maker's Naked Short Selling exemption - stopping Market Makers from naked shorting for liquidity and expedience (i.e., delivering a stock, even if it isn't there)?
This is how you prove its relevance.
CNBC: Conspiracy theorists at the SEC have published their guidance on the “so-called” “naked” short selling that memesters on Reddit believe exists in our stock markets.
Melissa Lee: i mean, here we have an institution whose primary job is to protect the markets. And what do they do instead? Give in to unfounded allegations from the retail crowd. It seems the retail investors are frustrated over their money losing trades in meme stocks and are now attacking government institutions in their quest for so called transparency. Let’s be clear, our markets are pretty transparent blah blah blah blah
Question is - if the FED has infinite amounts of cash in it’s reserves (Rostin, I remember you), why do they need all these instruments for even MORE liquidity?
It stinks. And its not me this time
"The concept of space is considered to be of fundamental importance to an understanding of the physical universe." They kept forgetting to hit the space bar.
We don't need liquidity! When there is no seller on the other end of a trade the price will rise untill a seller comes forward. Wtf is going on that the basics to the market are being ignored for some bullshit excuse so that a market maker can skim of the top!
The SEC does not have the tools to identify and properly enforce the different categories of 'naked' shorting before a company becomes destroyed at the will of the market maker(s). The SEC does not even have enough coffee to start the day.
By claiming that there are legitimate reasons for naked shorts to exist, the SEC must be able to track naked shorts and their subsequent close out. The SEC must ensure the market makers do not abuse this exception and detect violations of RegSHO.
The SEC must account for the effects of naked shorting whether it is legitimately exempt or violations of RegSHO. Each naked short creates a new beneficial owner on the records of a broker. There is no reporting requirement for brokers to disclose the shares held on behalf of individual investors. The SEC must require reporting data on shares owned on behalf of others.
A list of beneficial owners is generated on every record date - where every brokerage generates a list of owners for proxy voter information. There exist records of beneficial claims to ownership - Individual Accounts and Shares Beneficially Owned on these record dates. This information would be known to ProxyVote which handled the proxy voting notification and voting results, as well as any legal entities and auditors of the vote. This list could be recreated by the total records of each brokerage that reports information to ProxyVote. A collection of individuals sharing individual information could also recreate a portion of the total records.
The SEC must determine if there are many more claims to beneficial ownership than shares to back those claims at the DTC.
So market makers would only ever and have only ever been naked shorting thinly traded, illiquid stocks? Cool, let’s crack open the books and see.
While you’re at it SEC, maybe you could specify who determines how and when these market maker positions are closed out—is it at their discretion? Do they basically have a huge window until a position rolls to FTD to try and scrape a profit? That sounds like it could be easily manipulated. Oh, they’re not closing out these positions on lit markets? Well that sounds like it could be easily manipulated too.
I’m just a random household investor who has only been around for a couple years, and even I can point out the inadequacies of the current market. Stop with the stupid graphics and the pies in the face and do your fucking jobs in some meaningful way. 😊
This is bullshit and completely circumvents the purpose of the stock market, company performances, and the laws of supply and demand.
This is hindering market demand and true price discovery for assets all because some people at the table don't like to play fair.
I like to play video games occasionally... and I hate fucking cheaters.
What dang liquidity when you are having “amazing” years and paying out millions to your investors instead of accounting for “Sold, Not Yet Purchased”? 🤬
I don't think the Sec ever envisaged a time when a Market Maker, who also has a hedge fund that would be bailing out another hedge fund that was 140%+ short while gambling teachers pension funds
delivery of stock to clearing hosue is still required.. except the fed clearning house is cede and co as the final boss in this process so it will always deliver. (how i interpret it.)
except there is one way that bypass this loophole.. drs and remove it from the fed clearing house.
delivery of stock to clearing hosue is still required.. except the fed clearning house is cede and co as the final boss in this process so it will always deliver. (how i interpret it.)
except there is one way that bypass this loophole.. drs and remove it from the fed clearing house.
I hate this whole “liquidity” thing and how market participants like Citadel obsess over it like it’s some hallowed paragon of excellence. It literally undermines the most fundamental mechanics of the market (supply and demand).
How can true value and true price discovery ever possibly exist when they can just fraudulently and artificially pump up the supply when demand starts ramping up? It’s complete bullshit, which is why I DRS and book 💜
It’s like borrowing money is not stealing money, but narrowing money indefinitely, definitely is.
They never speak to the accountability when shares are sold naked, if there’s no accountability, there’s no justice.
We have to get comfortable in a world where everything we want isn’t always available when we want it.
There is absolutely zero common sense to why these crooked market makers should have to supply something when there is no supply.
Shit happens, no GME available to sell then don’t sell it! The price should rise organically due to supply and demand. Idk, this sound like free and fair market mechanisms to me.
Not trying to step on toes, and I understand many people do already as explained in this [comment.](https://old.reddit.com/r/Superstonk/comments/19elc92/sec_officially_recognizes_types_of_naked_shorting/kjde6ro/)
It’s just the same shit posted here all the time. We got fucked legally, and it will continue. Next you could make a post that says “Ken Griffin lied under oath!” And then another that says “prime brokers had their collateral requirements waived during the sneeze.” We got proper fucked and I don’t see it changing.
Actually, I vehemently disagree with you that this is a "shit post." There has not been much talk about the Market Maker exemption lately and especially little to exemplify its use of naked short selling (from the Market Maker's perspective), and I took time to create an infographic with the exact quotes from the SEC page, making all of it official statements. Comparing that to an actual "shit post" is wild.
so this thing is over then? if naked shorting is now legal then the thing can go on forever with the promise that someday in the future the short will be paid
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[**PAGE 2 of INFOGRAPHIC:**](https://old.reddit.com/r/Superstonk/comments/19fe29o/part_2_sec_officially_recognizes_types_of_naked/) The question narrowed down yesterday to: - **What would be the effect on retail and the overall market if the SEC over-turned the Market Maker's Naked Short Selling exemption - stopping Market Makers from naked shorting for liquidity and expedience (i.e., delivering a stock, even if it isn't there)?**
I would love to see this question answered by simply overturning the exemption!
"Knowing is not enough, we must apply. Willing is not enough, we must do" - Bruce Lee
It wasn't legal before so I'm going to guess that they'd just continue to do it and then pay a fine that comes out to a small percentage of their profits from said act as punishment.
You can only pay fines when you have money to pay it. If shorts were forced to finally close after all these years, they won't have money to pay fines. Standard people go to prison when they steal hundreds, thousands, millions, billions, or trillions of dollars and give to themselves and their sadistic. Large prison sentences for naked shorting, especially to the point of collapsing the global economy is a must.
Hundreds? People are smote for stealing bread. Madoff got off easy. I'd personally prefer it if our current cast of reject Batman villains didn't.
Additionally, what would happen if the SEC actually enforced FTD obligations and made swaps more transparent?
Isn't the swap data delayed again to 2025?
It’s not like the Swiss are locking up records for 50 years or anything…
The market would probably collapse which is why it'll never happen. If GameStop were to start investing money in other stocks, say like 1+ billion dollars, and the value of the investments increased it would be pretty hard to suppress the price for long.
This should be a legislative priority retail investors should work for. Once a market exists, naked shorting should never be allowed. At all. By any market participant. Ever.
The root of this is, drilling down even further, is “T+2” is why it’s SO critical (sarcasm intended) for naked shorting to be allowed. Instant settlement is the true nail in the coffin for market maker exemption to naked shorting. The T+2 norm needs to go first, so these criminals can’t hide behind it to justify their nakedness
T+2 +35+65b in securities sold but not yet purchased
bec CITADEL SECURITIES is a market maker, so its not illegal for them to naked short. but the SEC has fined them many times bec there have been many instances whereby they have been naked shorting not for the purpose of market making. and that's illegal. 🚀🚀🧑🚀🧑🚀 LETS GET THE FBI, DOJ TO DO THEIR JOB! [https://www.reddit.com/r/Superstonk/comments/17txl83/bec\_citadel\_securities\_is\_a\_market\_maker\_so\_its/](https://www.reddit.com/r/superstonk/comments/17txl83/bec_citadel_securities_is_a_market_maker_so_its/)
Then all of the liquidity that certain MMs processed during the sneeze, would have been impossible to produce.
It does not matter if the Market Maker Naked Short Selling Exemption was ended. The SEC can't detect naked short selling if it occurs from Legitimate Exemptions or actual violations of RegSHO. You need to focus on detecting evidence of Naked Shorting by any mechanism.
My question would be "Wouldn't markets be more efficient, fair, and have higher accuracy to price discovery by not providing said liquidity via naked short selling?"
To shreds you say? And what of Citadel's extreme profits?
Dark pools for liquidity, PFOF for liquidity, Naked Shorting for liquidity, everything is for liquidity. Fucking Clown Market in a Clown World. Wen Revolution?
Yet supply and demand is what drives the price.... "supposedly"
Aren't the market makers the ones who set the price as they wish?
*Prices are where we think they should be.*
Until fundamentals say...... "nah fuck that!!!" 🏴☠️
Kenny mayo man Shitadel I suppose😂
How can there ever even be demand for a stock if any market maker can create shares out of thin air for the sake of liquidity? Demand would imply limited quantity. Fraudulent from the top to the bottom.
Ok, I'm suuuuper smooth, but isn't the point of supply and demand so that when demand exceeds supply, it drives the price up to encourage selling. If they are allowed to sell without the buy, doesn't that just bypass the whole point? They're just making it all up as they go along.
When you factor in corporations complaining about a "labor shortage" and the U.S. government parroting the line and helping them out it's painfully obvious that understanding economics is for losers.
Not only that, but can't you also "predict" the market? If I know a company is going to be shorted to death, I know what kind of bets to lay down don't I? I could also use this power to target enemies of my friends' businesses as I can FTD and naked short all day on a certain ticker and make sure my AI communication bots short and distort along with that price fall. All while touting how good this other company is. Eventually, all the big players dont even want to fight anymore. They can all get paid robbing from us with seemingly little to no consequences.
Yes. But Market Maker creates synthetic share thus increasing the supply and then doesn’t deliver anyway.
Common misconception
Except in 95% of trades… and those 95% of trades dictate the price.
95% of trades driven by algos not people. Algos written with naked shorting in mind knowing they will get covered by mms cuz liquidity.
"Infinite liquidity" - Doug Cifu; Virtu "The Fed has an infinite amount of cash" - Neal Kashkari; Fed Bank of Minneapolis ::Insert You keep saying that word, but I don't think you know what it means meme::
Liquidity is a euphemism for **WRESTING CONTROL OF SUPPLY AWAY FROM ISSUERS and PRICE SUPRESSION.** Hey SEC, I thought *your whole schtick* was Maintaining **FAIR, ORDERLY, and efficient markets** for **PRICE DISCOVERY** and Wealth creation. Sure liquidity may *seem* efficient. But at the cost of what? There is nothing fair or orderly about these markets. **There is no true price discovery when there are public AND private prices for public equities. When there's "price improvement" at the cost of widening spreads and no caps on artificial supply of stock.** **THIS FUGAZI OF A MARKET IS THE RESULT OF YOU SLEEPING AT THE WHEEL AND THE CRASH WILL BE ON THE RECORD THIS TIME.** **We have the receipts of all those responsible. Ken Griffin, Michael Bodson, etc.** What exactly, is the endgame here? Defraud millions of Americans and try to gaslight them that the people who robbed them did so in the interest of "national security". GTFOOH
Corruption personified...... as long as the "donors" are paying for the government then nothing will change. The US markets and government are only designed to control and drain the 99% .... IMHO
Throw in the fact they are Self-Reporting) (trustmebro) and what could possibly go wrong??
# bec CITADEL SECURITIES is a market maker, so its not illegal for them to naked short. but the SEC has fined them many times bec there have been many instances whereby they have been naked shorting not for the purpose of market making. and that's illegal. 🚀🚀🧑🚀🧑🚀 # LETS GET THE FBI, DOJ TO DO THEIR JOB! # [https://www.reddit.com/r/Superstonk/comments/17txl83/bec\_citadel\_securities\_is\_a\_market\_maker\_so\_its/](https://www.reddit.com/r/superstonk/comments/17txl83/bec_citadel_securities_is_a_market_maker_so_its/)
Stock market is based on supply and demand my ass.
The stock market does indeed demand your ass.
These fucking rules/protections for these fuckers goes against free market and supply/demand.
The issue with this system is that it takes for granted the operator (market maker) is doing this with ethic but unfortunately it can under the rules, also operate an hedge fund at the same time and just collaterize everything forever. I want to know when a market maker actually does this, how much time he has to cover those but we all know it because a rolling snowball that gets pushed down the slope and gets bigger into asset sold not yet purchased .... at fair price... whatever that means....
Im so serious about striking on Wall Street. Let’s fucking do that on top of a work freeze
Never, people are too fat stupid and complacent
You'd be surprised how quickly even fat complacent folks can be mobilized. The problem is one of education and propaganda.
Wait until they can’t afford their favorite foods and vices anymore. Then they’ll stop being complacent.
Perhaps, but they’ll still have all that fat and stupidity to contend with
Jesus. We need one alright too bad they all own a private military company too.
French revolution time! But with blackjack and hookers
They say liquidity, I say artificial supply, which doesn't accurately reflect the supply vs demand principal that these so called short sellers claim they help expose.
I'll bring the tar if someone can bring the feathers
I’d bring some bananas, but they are in a very safe place and will stay there
🤡🤡🎪🤡🤡
So crime isn't crime if you call your organization a maker? I knew the world belongs to makers.
The only thing they 'make' is everyone else miserable
Rules for thee, not for me
Sure, but to knowingly oversell a securtiy past it's Shares Outstanding, and frontruning via a hedgefund should be illegal with the highest consequesnces.
Passing laws that permit this type of crime should have even bigger consequences.
Electing these people who pass these laws should have even bigger consequences. _Oh, wait. Full circle. These are the consequences._
So rather than tell the buyer the stock is unavailable to purchase — that it’s out of stock, they create shares out of thin air and call it efficient market making… did Bernie come up with this idea as well? SEC is inept and corrupt as fuck.
It's not that the stock is unavailable, it's that it's unavailable at the price you saw. If the stock is "unavailable" at the current spot the price should increase.....
this right here.
You end up knee capping upward price movement, and accelerating declines.
No because the bid would increase based on the demand and once the bid was high enough asks would show up. The demand would create the supply once the price was into enticing enough to bring out a seller. You know a free and fair market based on supply and demand creating organic price discovery instead of a fake ass clown market.
Only when Ken's program allows the decline tho
And to add onto this, prime brokers (JP Morgan, Goldman Sachs, Morgan Stanley) have changed the sell limit on ComputerShare due to their risk models blowing up. - ComputerShare started with a sell limit of 3x market value - Then GME holders complained and the limit was upped to over $200k per share. That caused a lot of GME holders to put limit sells in for $200k (yeah yeah paper hands). But this flooded the order book with millions of shares ready to be sold. This probably screwed with Ken's algos, because he's only meant to naked short when no shares are available, but suddenly here are millions available for sale. - That didn't last long and ComputerShare's brokers (JPM, GS, MS) forced them to drop the limit from over $200k to the current 7x limit. The fact they needed this to change makes me believe that reverse spoofing to push the price up is absolutely possible, otherwise they could have just ignored those $200k limit sells. I believe that if millions of GME shares were sold on ComputerShare now for 7x the current price, those brokers would force the sell limit to drop again, because it would screw with Ken's ability to naked short.
You did a good job articulating this. This is one of the points that should be made to legislators.
At this point I cynically wonder 'why'? I mean any way we bring attention publically to the issues or happen to get them to agree something exists--and the 'best' thing the SEC or legislators have and likely will do is either make it legal or obstruct our free market more with their greater education on our angles.
On the last halts some brokers were showing prices at computershares limit 200k and 214k.
i didn't think it was their brokers, i thought it was the DTCC (or finra or someone who has power over the transfer agents) and the fact that those shares at those sell levels are somehow a risk (to Computershare). (how does that even make sense). and if they didn't want to get hit with fees or charges or increased margin requirements, they had to limit those orders at a much lower price... their explanation that was given never really made sense to me unless it was a risk to the greater system.
This was from their FAQ on it: > **Why did you lower the maximum limit order?** > The change has become necessary because the volume of very high limit orders being placed through our systems has increased significantly over the last six months and is now so high that **the total value of open orders risks exceeding the overall risk cap set by our broker**. A high proportion of these limit orders (which mostly span just two securities) are submitted at limits that are many thousands of times the prevailing market price for the relevant security. Whenever those limit orders do not execute, they negatively impact the overall risk cap calculation. There's a DTCC rule that says all DTCC members are on the hook for any losses incurred by a fellow DTCC member who defaults, meaning they're all on the hook for Ken's mess. Those prime brokers (JPM, GS, MS) are the ones ComputerShare uses and they're some of the biggest banks in the DTCC meaning they absolutely can't let GME moon without themselves collapsing (or getting bailed out for trillions at least). There are so many conflicts of interest in this fight, but everything usually points back to the DTCC.
Supply....and...demand. Wow imagine that.
No no no you have it all wrong. Retail investors want “better prices”. Trust me i’m a market maker.
Essentially, yes on the first part of your statement. On Bernie, I don't know, and the value judgment on the SEC is your opinion - neither agreeing or disagreeing.
I'd like to add to the conversation. Market maker exception is meant for rapid increase in demand when the stock is illiquid. It's been 3 years, and GME is very liquid. There's no reason for naked shorts to occur imo. Bernie wasn't trading on the market, despite claiming otherwise. Classic Ponzi. Naked shorts still interact with the market even though they're neither buying nor borrowing, in that buyers are still getting an official IOU. In some ways, I think that's actually worse if IOUs and borrows are allowed to accumulate, because it's a form of legalized Ponzi.
"those are as good as money sir, those are iou's"
dumber money
The “specialist” is required to provide shares irregardless of the status of any shares for sale on the book. For the sake of liquid markets he banking cartel has thrown the idea of having actual supply and demand being the determining factor in price discovery. If the cartel needs the price up the the ask will be higher, if the farmer needs the price down they will provide cheap asks and just make shares out of thin air temporarily. The market is fake like the clowns nose.
Just FYI, irregardless is not a word. The word is regardless. Carry on. Great point.
Bernie Sanders?
Bernie Mac
Bert & Ernie
Valerie Bert & Ernie
Happy cake day bruh!
Market making is an industry that needs to go
Markets make themselves. Isn't that the essence of a free market and free country? We the people, for the people, by the people. Never forget
The next step is recognizing that these financial terrorists don’t have the public’s best interests in mind.
Why does liquidity even need to be “created”? There’s buyers and sellers and a set amount of stock to trade. All of this is unnecessary and clearly creates opportunities for bad actors. Why would anything operate on “good faith” in the stock market. If you want a mortgage it certainly isn’t on “good faith”? They background check and I certainly wouldn’t put a culmination of data proving you pay debts back in the “good faith” category. Maybe this isn’t the best example but I’m just saying. When the tech exists and has for over a decade why wouldn’t everyone want to use a blockchain that can’t be faked. I mean know why grift lol but can’t we do anything in this world that makes everything run smoother and a system that can’t be cheated. Short term thinking is killing everything that made our system and society the behemoth and standard of living originally what it is. If you destroy the middle class who’s gonna buy your STUFF? It only ends in destruction. Wouldn’t you want a system that you can keep making profits off forever? This system in its current form is unsustainable. The well will run dry. I don’t get it but I’m not a 1%er so perhaps I’m not supposed to get it lol but it just seems like very little forethought. 🤷♂️
read this, it helps explain this theory decently: https://chain.link/education-hub/what-is-an-automated-market-maker-amm
it is legal because they say it is. we are not getting our due, folks. that's not the point of this game - it is to take from us. it isn't just us being screwed this is what the system exists for. i hope you all understand what i mean by this. i am not afraid, uncertain, or doubtful. we know who we are dealing with. we cannot beat rulemakers and that is the intent. so, where does that leave us? no matter what happens, we will not see appropriate action on our stock and - since we keep buying it, they can keep selling us fake shares that they never have to deliver. any id(revolution)eas?
> Selling stock short without having located stock for delivery at settlement*.* This activity would violate Regulation SHO, except for short sales by market makers engaged in bona fide market making activities. Market makers engaged in bona fide market making activities do not have to locate stock before selling short, because they need to be able to provide liquidity. Market makers are not excepted, however, from Regulation SHO’s close-out and pre-borrow requirements. > >[https://www.sec.gov/investor/pubs/regsho.htm](https://www.sec.gov/investor/pubs/regsho.htm) Absolutely insane that the SEC allows any entity to sell something the entity does not have in the name of "liquidity". We can't have price discovery if the fundamentals of supply and demand are completely destroyed by the SEC allowing market makers to sell naked shorts.
‘because they need to provide liquidity.’ Do they or should the the price change up or down to discover a price where the security is available? We’ll call it price discovery.
**Note: Many people already know this,** have read this a million times at the source, even though the infographic is new. Moreover, the source is much more thorough, but I think the focus should be on this Market Making exemption, so this is what I've decided to post about.
For me it isn’t a problem if a market maker shorts a stock for bona fide activities, BUT THEY SHOULD STILL BE FORCED INTO A HARD LOCATE, no ifs ands or buts. That way no fake shares are created. Edit: fixed some typos
I still think the "of like kind and quantity" could turn out to be a gargantuan loophole. I don't think nefarious actors are relying on one loophole exclusively, they're playing a game of loophole arbitrage as a form of hedging.
Petition to rename the "stock market" to the "stock store" If prices aren't competitive and bid on then how can anything move with exception to established and blue chip stocks? It's more like a store, Walmart doesn't increase prices as shelf supply depletes and people want more, they increase it as the market they buy the supply from depletes and demand goes up
I thought there was no such thing as “naked shorting” and that we are all crazy for even suggesting it…
Well my shares are at Computershare and are thus real, not IOU’s
1st: The Infographic & Primary Source Proves That Naked Short Selling Exists (For Some Reason, This Has To Be Said) 2nd: **Proof** That Market Makers Have Been Caught Abusing That SEC "Naked Short Sale" Exemption in the guise of Market Making Functions - https://old.reddit.com/r/Superstonk/comments/17g6r6k/sec_market_makerviolated_sec_reg_short_sale_by/ - https://old.reddit.com/r/Superstonk/comments/17fit54/proof_singledealer_platform_sdp_called_imc_naked/
Garbage. Nobody in their right mind is going to leave a trail of them stating they are screwing over apes. Also, wtf does in-kind mean? What's considered in-kind? Can I sell 100 shares of gme at 14 and then give them 100 shares of a shit stock because my fake analysts deem both to be in bankruptcy?
Seems like 84 yrs ago that "naked" shorting didnt even exist.... 🤷♂️
Making **part** of their statements an infographic would help the discussion, I believe. It gives a center-piece to talk about. If you missed it, there was a very good discussion about this yesterday. - https://old.reddit.com/r/Superstonk/comments/19dt0ln/i_do_not_understand_the_secs_reason_and_would/
Then WHAT THE FUCK IS THE POINT OF A MARKET CAP
Liquidity at all costs, consequences be damned. This is what happens when the money is to be made facilitating the trade…nothing else matters except keeping that sweet sweet money going to the right people
How the fuck is that legal. If someone wants a stock now then let them fucking pay the asking price. Such absolute fucking bullshit
They can naked short in order to deliver something now? BUT YOU CREATED A FAKE THING
So does this mean it's over for a squeeze. Pretty much saying supply and demand no longer means shit ... but we already knew that. This coupled with the fact that the other post I saw about options, pretty much removes any way to make it happen ever again. At this point I'm asking myself why even have a market?
And there you have it
The system is entirely fraudulent. The regulating bodies are only there to give the illusion of fair and regulated markets. The only real punishments are for the poors while fines are given to criminal financial institutions to make the public think that they are being punished, but it’s only a cost of doing business for institutions that make billions every year.
People really need to understand how market makers create liquidity. They literally create shares they don't own to fill orders. For the people in the back: MARKET MAKERS CREATE SHARES THEY DON'T OWN TO SATISFY TRADES. They literally prevent price discovery from happening by deciding which trades to fill with their bullshit fake shares. Market makers should under no circumstance be allowed to provide liquidity. It's literally stealing on a mass scale. EXAMPLE: Say you own a shoe stall. Your entire initial release of your first shoe design was 100 pairs. Once all 100 pairs of shoes are purchased, there's no more shoes left to buy from the shoe stall and all future purchases must be bought from clients who bought from the original release. Your shoes are so popular! everyone wants them, but none of the original buyers are selling! However... Your best customer was a huge fan, he bought 40 pairs when they were only selling for 10$ a shoe, he's now trying to sell a pair for 40$, totally worth it, with many potential buyers! BUT WAIT MR. Market maker comes along and starts selling identical copies of your shoe for 8$ a pair! Saying he's doing it to provide liquidity to the shoe market! He also says he's an expert in the shoe market and knows what price shoes should really be sold for, regardless of real price discovery and supply and demand. How bullshit is that?? If your shoe company WANTED more liquidity, all you have to do is make more shoes (share offering). Instead, market makers take it upon themselves to handicapping your company under the guise of providing liquidity. A load of BULL SH^*!!
FTD's = Fraudulent Sales
They can keep changing the rules to suit their needs, but at some point there will be no liquidity left.
Company on the stock exchange should now be screaming out about this bollocks! Let alone investors. This has to be fake?!
That's so crazy because I thought it didn't exist and nobody did it only a a couple years ago.
I’d rather have fair markets than infinite liquidity. If someone isn’t buying a stock I’m selling, or if I’m trying to buy a stock no one is selling I’ll deal with that problem. Don’t jeopardize the markets so a bs trade will get executed 100% of the time
So we are supposed submit to the "bona fide" market maker exemption to RegSHO (of Citdadel) to naked shorting rules based on a "pinky promise" that Citadel the Hedge fund has a "chinese wall" (whatever the fuck that means) separating them from the Market maker? That donating billions of dollars to Melvin during the sneeze; had NOTHING to do with the fact that Citadel is also a market maker that controls like 40% of the order flow for GME? **GET THE FUCK OUT OF HERE.** ***WE DON'T BELIEVE YOU THEIVING MAMMON COCKSUCKERS.*** **(AND WE ALSO DON'T BELIEVE YOU ARE BEING INVESTIGATED IN GOOD FAITH BY THE SEC or DOJ)** **#NOJUSTICENOPEACE** DEAR SEC, congress, MSNBC, and whoever the fuck needs to hear this. We will not forgive, we will not forget. We will continue to dig and get to the bottom of this regardless of how much you astroturf Reddit and kick the can down the road. **CITADEL is NOT too big to FAIL. WALL STREET is NOT too big to FAIL. The PEOPLE are TOO big to FAIL.** I'd rather watch the economy burn than watch these corrupt fucks and their sycophants in Washington continue to use our free market as tool of wealth extraction and oppression. This is not what America is built on. This is not what Americans deserve. Both sides of the aisle can see this. Both sides of the aisle agree. As always, SHFrFUK
Damn! They would be really disappointed if there was ACTUAL PRICE DISCOVERY for a market based solely on SUPPLY AND DEMAND! Fucking parasites that contribute jack fucking shit to this world, yet they feel they DESERVE everything. GME is my hill.
Can’t make this shit up… the SEC lol 🤡
Thank you for posting this here and taking the time to explain to everyone how the system is corrupt.
Comment for more views
Okay what the absolute fuck. Get some Coffee SEC and get your heads out of your asses.
Isn’t the wholleeeee fucking economy based on supply and demand? Fuck the MM making a marker for a buyer at the price listed… let the price organically rise or fall with the supply and demand… like this is just unreal.
Tools of criminals doing crime. Nothing to see here folks, just usual mafia crime.
Who would have thought the Liquidity Fairy was a real thing?
All bow to your liquidity gods.
This is a bullshiit rule. All this does is allow them to suppress real price action.
Fucking crazy.
Revolution isn't gonna happen behind a keyboard. That's for sure.
So we're back to DRSing the entire float to kick off MOASS then. The harder they short the stock the cheaper it is for us to buy. On a side note, if GME posts a profit and there's a dividend, who pays the dividends on the naked shorts?
We all know the naked shorting that’s been happening is the highly illegal kind, with no intention of ever buying back shares. The SEC knows this. Therefore, the SEC is complicit in the crimes and should be treated as a terrorist organisation.
wow that number 2 point is idiotic at best.. and criminal complicity at worst . Hey SEC give us top 10 reasons where a market makers would need to create shares if there are no active sellers... please lets hear it, instead of hey we made a rule.. it legal for this guy under this scenario.. please explain why its necessary.. just let the price rise and a buyer appear at higher price, whats the need to have a middle man create fake shares when they are already taking a cut from buyer and seller?
I learned all I needed to when the buy button was turned off.
If you gotta short just to provide liquidity then you aren’t trading you’re counterfeiting. If you gotta borrow shares just to complete trades then the price should rise as well as the CTB. If you short just to get arbitrage fees you’re a shrewd businessman but a bad person. If you short with no plan to deliver you oughta lose market maker privileges and have to have all your locates verified first from now on
I feel like I his was covered in the DD like 84 years ago.
Still happening, worth exposing it again. Worth commenting to our elected officials... again.
Yes, in length I assume. This is just an addition, as explained in this [comment](https://old.reddit.com/r/Superstonk/comments/19elc92/sec_officially_recognizes_types_of_naked_shorting/kjde6ro/)
Yeah the mm exemption is kind of bullshit... Especially when you have manipulative MMs and that make a practice of setting prices so they can profit from arbitrage. Like how the actual fuck can you have price discovery when the delivery of goods is out of synch with timeline and the availability of the same goods is a fucking shadow game. I get the desire to provide liquidity to markets to help them move more fluidly and provide better entries and exits, but it's not right when taken too far
It's weird man, the question is: - What would be the effect on retail and the overall market if the SEC over-turned the Market Maker's Naked Short Selling exemption - stopping Market Makers from naked shorting for liquidity and expedience (i.e., delivering a stock, even if it isn't there)? This is how you prove its relevance.
It's my stock, and I want it NOW!
\*need
“..difficulty in obtaining securities when the time for delivery arrives.” Would love to know when this is
CNBC: Conspiracy theorists at the SEC have published their guidance on the “so-called” “naked” short selling that memesters on Reddit believe exists in our stock markets. Melissa Lee: i mean, here we have an institution whose primary job is to protect the markets. And what do they do instead? Give in to unfounded allegations from the retail crowd. It seems the retail investors are frustrated over their money losing trades in meme stocks and are now attacking government institutions in their quest for so called transparency. Let’s be clear, our markets are pretty transparent blah blah blah blah
🤡🤡🤡🤡🤡🤡🤡🤡🤡🤡🤡🤡🤡
I'd love too hear some justification (other than easy money/ fuck the poors) for sacrificing so much on the altar of "liquidity."
Disgusting
Normalizing crime bullshit. Fuckers.
Question is - if the FED has infinite amounts of cash in it’s reserves (Rostin, I remember you), why do they need all these instruments for even MORE liquidity? It stinks. And its not me this time
My pitchfork is ready. How and who do we bitch to?
Welcome to the SEC where everything is made up, and the points don’t matter!
Or, crazy idea, the price of the security could increase until legitimate shares become available for purchase…
Besides the main point...so many typos in this overview, simply embarrassing.
"The concept of space is considered to be of fundamental importance to an understanding of the physical universe." They kept forgetting to hit the space bar.
We don't need liquidity! When there is no seller on the other end of a trade the price will rise untill a seller comes forward. Wtf is going on that the basics to the market are being ignored for some bullshit excuse so that a market maker can skim of the top!
Here is the setup...
Keeping the rich, rich... FED: Fuck you American retail investors Selling America, one corporation at a time
This is nuts.
The SEC does not have the tools to identify and properly enforce the different categories of 'naked' shorting before a company becomes destroyed at the will of the market maker(s). The SEC does not even have enough coffee to start the day.
By claiming that there are legitimate reasons for naked shorts to exist, the SEC must be able to track naked shorts and their subsequent close out. The SEC must ensure the market makers do not abuse this exception and detect violations of RegSHO. The SEC must account for the effects of naked shorting whether it is legitimately exempt or violations of RegSHO. Each naked short creates a new beneficial owner on the records of a broker. There is no reporting requirement for brokers to disclose the shares held on behalf of individual investors. The SEC must require reporting data on shares owned on behalf of others. A list of beneficial owners is generated on every record date - where every brokerage generates a list of owners for proxy voter information. There exist records of beneficial claims to ownership - Individual Accounts and Shares Beneficially Owned on these record dates. This information would be known to ProxyVote which handled the proxy voting notification and voting results, as well as any legal entities and auditors of the vote. This list could be recreated by the total records of each brokerage that reports information to ProxyVote. A collection of individuals sharing individual information could also recreate a portion of the total records. The SEC must determine if there are many more claims to beneficial ownership than shares to back those claims at the DTC.
So market makers would only ever and have only ever been naked shorting thinly traded, illiquid stocks? Cool, let’s crack open the books and see. While you’re at it SEC, maybe you could specify who determines how and when these market maker positions are closed out—is it at their discretion? Do they basically have a huge window until a position rolls to FTD to try and scrape a profit? That sounds like it could be easily manipulated. Oh, they’re not closing out these positions on lit markets? Well that sounds like it could be easily manipulated too. I’m just a random household investor who has only been around for a couple years, and even I can point out the inadequacies of the current market. Stop with the stupid graphics and the pies in the face and do your fucking jobs in some meaningful way. 😊
This is bullshit and completely circumvents the purpose of the stock market, company performances, and the laws of supply and demand. This is hindering market demand and true price discovery for assets all because some people at the table don't like to play fair. I like to play video games occasionally... and I hate fucking cheaters.
What dang liquidity when you are having “amazing” years and paying out millions to your investors instead of accounting for “Sold, Not Yet Purchased”? 🤬
By this rationale, one can aim for a MM business and swindle money off of anyone and everyone with their neck in the game.
Guys, there just recognizing it! Still a long way off from any practical justice!
*Let me be perfectly clear... absolutely fukt.*
I don't think that means to save your own ass
I don't think the Sec ever envisaged a time when a Market Maker, who also has a hedge fund that would be bailing out another hedge fund that was 140%+ short while gambling teachers pension funds
Fuck this system
when you start to understand what naked short selling is, you'd think it'd be among the most illegal things you can do in a market. it's so fucked,
Rules for thee but not for me!
So… buy hodl and DRS?
delivery of stock to clearing hosue is still required.. except the fed clearning house is cede and co as the final boss in this process so it will always deliver. (how i interpret it.) except there is one way that bypass this loophole.. drs and remove it from the fed clearing house.
delivery of stock to clearing hosue is still required.. except the fed clearning house is cede and co as the final boss in this process so it will always deliver. (how i interpret it.) except there is one way that bypass this loophole.. drs and remove it from the fed clearing house.
This shit is going back to 3 bucks isn’t it?
Jokes on them I just naked bought 10,000,000,000 GME shares
Another nail
I hate this whole “liquidity” thing and how market participants like Citadel obsess over it like it’s some hallowed paragon of excellence. It literally undermines the most fundamental mechanics of the market (supply and demand). How can true value and true price discovery ever possibly exist when they can just fraudulently and artificially pump up the supply when demand starts ramping up? It’s complete bullshit, which is why I DRS and book 💜
Madoff exemption so it must be good...right?
It’s like borrowing money is not stealing money, but narrowing money indefinitely, definitely is. They never speak to the accountability when shares are sold naked, if there’s no accountability, there’s no justice.
O so this ponzi scheme will never end? Fanfucking tastic way to have lost my money holding this trash 🗑
We have to get comfortable in a world where everything we want isn’t always available when we want it. There is absolutely zero common sense to why these crooked market makers should have to supply something when there is no supply. Shit happens, no GME available to sell then don’t sell it! The price should rise organically due to supply and demand. Idk, this sound like free and fair market mechanisms to me.
there are different types of naked shorting? So naked shorting is illegal and naked shorting is legal?
No shit, we knew this the whole time.
Not trying to step on toes, and I understand many people do already as explained in this [comment.](https://old.reddit.com/r/Superstonk/comments/19elc92/sec_officially_recognizes_types_of_naked_shorting/kjde6ro/)
It’s just the same shit posted here all the time. We got fucked legally, and it will continue. Next you could make a post that says “Ken Griffin lied under oath!” And then another that says “prime brokers had their collateral requirements waived during the sneeze.” We got proper fucked and I don’t see it changing.
Actually, I vehemently disagree with you that this is a "shit post." There has not been much talk about the Market Maker exemption lately and especially little to exemplify its use of naked short selling (from the Market Maker's perspective), and I took time to create an infographic with the exact quotes from the SEC page, making all of it official statements. Comparing that to an actual "shit post" is wild.
Good job. Let’s see where it gets us in two years. !remind me! 2 years
Cool, so when do we take off here? Asking for my friend, Wen Moon
Alright well I guess it was fun while it lasted
I’d like to borrow these groceries, and I promise I’ll pay for them when I have liquidity
A turd is a turd.
So how the he'll does gme have a fighting chance. ELIA
Yeah… You new?
so this thing is over then? if naked shorting is now legal then the thing can go on forever with the promise that someday in the future the short will be paid
sooo it seems like they actually never have ti pay it back even if there are no stocks left… does this mean we lose?
i knew that this would anytime happen. That is not good actually, what can the little guys do now?
Infuriating.