Ruey Chang Comment On Regulatory Notice 21-19
There should be more transparency on short positions and action taken to prevent naked shorts which will hurt the retail investors.
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There should be more transparency on short positions and action taken to prevent naked shorts which will hurt the retail investors.
More transparency in shorting. Point blank period.
Transparency is key. It's a free market, but not a fair one. The odds are purposely hidden, stacked against the retail traders and then manipulated. It's time for change. It's also time for margin calls, though in the case of stocks like AMC and GME, this is about more than just money.
To FINRA: In a fair and open market there should be transparency and a level playing field for all investors; be they retail or institutional. The # of shares shorted should be available IN REAL TIME throughout the trading day. Dark pool trading must be eliminated. We can clearly see that large institutions are buying massive quantities of AMC stock (for example) on the dark pool and then flooding the public exchange with shares (via selling, short-selling and short laddering) in order to MANIPULATE THE PRICE DOWN.
In a fair and open market there should be transparency and a level playing field for all investors; be they retail or institutional. The # of shares shorted should be available IN REAL TIME throughout the trading day. Dark pool trading must be eliminated. We can clearly see that large institutions are buying massive quantities of AMC stock (for example) on the dark pool and then flooding the public exchange with shares (via selling, short-selling and short laddering) in order to MANIPULATE THE PRICE DOWN.
Yes, short interest should be reported daily or at least weekly and in real time. Not you report today what interest was two weeks ago. Also why take a firms word for it what their short interest is. It should not be self reporting. Should be a system in place to confirm what they are reporting is true. Then finally, the most important thing. MAKE HEDGE FUNDS ACTUALLY REPAY THE SHARES THEY BORROW FROM TIME TO TIME. MARGIN CALL THEM. Someone shouldn’t just be able to keep borrowing forever.
Every share should be given a unique identifier and accounted for. If a share is short it should be marked as loaned and short in a public database that is instantly available to the public. It doesn't have to say WHO but a unique identifier for the trader and platform would be nice. An ID that only the owner of the ID could use to make sure the ledger is valid. Another option would be to use blockchain to store shares and put them into the owner's blockchain wallet on the broker.
Shutdown the dark pools and force everyone to settle and not be able to FTD