John Josma Comment On Regulatory Notice 21-19
Hello, I would like more transparency when it comes to reporting short interest. Right now short interest doesn’t account for naked shorting which is illegal but still being done and the data’s does not always reflect the current state. Every platform charge a subscription fee in order to view short interest which should be available just like every other data. Short interest from ortex, fintel, and S3 partners does not always reflect the same numbers of short interest. Hedge funds or anyone that takes a short position should report their short positions on a daily or weekly bases so we can know if naked shorting is being done or not, plus it give more transparency and trust to the investors. A company shouldn’t be allowed to be shorted more than 100%, which still doesn’t explain the fact that GameStop (GME) was over 140% shorted. There’s too much fraud going on in the stock market, that’s why you see a new stock 1-10X in a trading day. I believe that the clearinghouses are selling or giving data’s to the hedge funds so they can know retails positions and bet against them. Payments for order flow should not be a thing, there’s too many conflicting interest which we saw back in January with Robinhood, citadel, and Melvin Capital which all had interest in each other. Citadel had interest in Melvin and gave 1B to help with the short position and citadel is the one that pays Robinhood for payments for order flow. I’m not saying that shorts shouldn’t exist, well it should but transparency is what is needed. A hedge fund shouldn’t be able to put a false report out and profit from it because the stock tank due to fears from investors.