Jonathan Gedrich Comment On Regulatory Notice 21-19
Short positions should have to be reported immediately upon hitting the threshold list. Which as you know means FTD's are running rampant, they should be forced to cover in entirety to discourage institutions from dragging out their mistakes if they've had enough days consistently to reach the list. This would have saved them billions to date. Also Prime brokers should be required to report naked shorts immediately, because well they're illegal for starters. So maybe instead, we should actually enforce that law MUCH stricter because we all know most FTD's are naked shorts. Upon breaking the law, they should be fined for whatever financial burden they put on the opposing trader. Yes that could be very expensive, but it's an illegal practice. They should be forced to pay or the responsible parties should be looking at jail time along with any trading rights or services they provide should be stripped via the white collar crime they committed.