The FINRA 21-19 filing is a long overdue step in the right direction. However, given the current rules set in place, which allows prime brokerages to give their clients, hedge funds, an ability to essentially circumvent any short position reporting through what they call 'short arranging products' or 'arranged financing programs', the regulations proposed in FINRA 21-19 will
IMPORTANT MAIL VOTE
OFFICERS, PARTNERS AND PROPRIETORS
TO: All NASD Members
LAST VOTING DATE IS APRIL 5, 1987.
EXECUTIVE SUMMARY
NASD members are invited to vote on proposed amendments to Article III, Sections 21(b) and 41 of the NASD Rules of Fair Practice. The NASD Board of Governors has reviewed the applicablity of recent regulation of short-sale practices by NASD members to various types of
There is an obvious lack of regulation when it comes to short positions. The regulation that exists does not offer enough punishment to deter unlawful actions. The threat of jail time would be a much better deterrent for fraudulent activity as compared to fines. Isn't this how it works for everyone, or just the lower classes? There are two currencies; money and time. Criminals can make their
Rule 1. All short sale shall be reported to finra by end of each settlement day. Rule 2. Finra shall make public report the day to day short sale by end of settlement day or the trading week. Rule 3. All unused loaned shares shall be reported to finra by end of settlement day. Rule 4. Finra shall make public the outstanding unused loaned share by end of settlement day of a trading week. Rule 5.
Every member that is a party to a security-based swap with a customer, broker or dealer, or other Counterparty, or who has guaranteed or otherwise become responsible for any other person’s SBS obligations, shall comply with the following requirements, except that a member that is registered as a security-based swap dealer under Exchange Act section 15F shall instead comply with SEA Rule 18a-3.
As a retail investor, I believe all of the proposed changes should be enacted. Transparency is a requirement for our markets to remain fair and free. Gamestop had a short interest of 140% of the float at one point in December 2020/January 2021 which lead to the WallStreetBets short squeeze and subsequent trading restrictions because of systemic risk. If the short interest had been reported on a
FINRA 21-19 is a long overdue change. It is critical for the survivability of the US Markets that transparency and trust remain with to sustain it. Recent events have called that critical trust relationship into question, and as an American who serves this country, I urge FINRA do its utmost to ensure that the integrity of the United States markets remain intact. Unfortunately, businesses have
Using inverse ETF's is easier for me to follow than going short.
its my duty as an investor to understand the risk and rewards. Why does someone with more net assets have to have more knowledge then me, sure your saying that becuase they have more assets they can diversify more but they can make the same mistakes as anyone else. I shouldnt have to pass a test to buy a stock, if I dont do enough accurate erase arch it should be on my just like any other stock
I am not an expert in investments, but I understand how the stock market works. It is my decision to invest a part of my savings in the stock market, I think its one of the liberties of this beautiful country. Plus, I think I will gain more money in the long run than what the banks can offer me. Surely my money in the bank will lose value everyday with inflation. I hope these restrictions are not
