(a) Filing Requirements
Each member that sells a security in a non-public offering in reliance on an available exemption from registration under the Securities Act ("private placement") must: (i) submit to FINRA, or have submitted on its behalf by a designated member, a copy of any private placement memorandum, term sheet or other offering document, including any materially amended
Eliminate dark pools Fines should be greater than the profit hedge made from the illegal activity Jail time is needed for market manipulation. Short positions should be forcibly closed out if illegal market manipulation is found and trading rights of those involved should be revoked. Shorting taking place in the dark pool needs to be disclosed to the public. If an institution buys shares in the
I fully support Short Interest Position Reporting Enhancements, I am a 63 year old retail trader who has seen short selling abused over many years. I believe the enhancements plus additional regulations that will help stop the market manipluation using shorts and naked shorts is crucial to head off future financial disasters in the marketplace. Please pass these proposals and consider anything
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Shubham Agrawal, a Senior Security Engineer with FINRA, discovered that the Amazon EC2 Autoscaling service lacked PassRole validation check for one of its commands, CreateLaunchConfiguration. This can lead to “privilege escalation” in the AWS cloud, which is gaining elevated access or jumping from a lower privileged role to higher privileged one. This blog discusses the
1. Disclosures of short positions by institutions and hedge funds on a shorter time window (preferably daily) 2. Much heftier fines for participating in the illegal practice of naked shorting 3. More regulations of dark pools and the creation of synthetics shares 4. Daily reports on margin and those who are over leveraged in a short position 5. More up to date reporting and transparency in
Short Sale Reporting must include all open short positions, such that FINRA and the public can have an accurate and complete understanding of how many shares have been sold short for a given security. Without this transparency, FINRA and SEC rules and laws will continue to be broken, without accountability and faith in the US markets, as a whole, will continue to be eroded. I submit that FINRA
FINRA, you have big name institutions that have in the past been found violating regulations on how to properly mark a short as short instead of long, how to properly report information, and how to properly manage it. In a free and transparent marketplace, every institution should have their cards on the table. If they want to invest, they should report it. If they want to short, they should
I am shocked to hear that the regulators are considering restrictions to leveraged funds. Leveraged funds are significantly safer compared to option trades and outright shorting. For example, I use TQQQ to go long and SQQQ to go short NASDAQ, instead of outright shorting NDX. Imagine amount of capital required by small investor who wants to short NDX - or QQQ for that matter - there is no better
Short interest should not be self reported. I would like to see audits take place to check for shorts hidden in options. I would like to see a requirement to have all synthetic short positions and Fail to Delivers reported daily, making it public knowledge. Along with transparency, it should be publicly reported when institutions are margin called and when they close out their short positions.
While short sales can be an important market mechanic to send signals to protect investors from corrupt or inept corporate leadership, hidden short sales and hidden synthetic short sales work against a free and fair marketplace. If institutional and "big money" investors detect reasons to believe that the future success of a company is unlikely, hiding their short positions at best
