Hello FINRA, Leveraged and inverse funds are important to my investment strategy. For example in a downward market trend (Q1 2022) I am able to invest in an inverse leveraged fund (e.g., SQQQ) to mitigate downside risk associated with my individual stock NASDAQ investments. As my individual NASDAQ investments declined the loss was offset by my investment in SQQQ. This helped me protect (hedge) my
SUGGESTED ROUTING
Senior Management
Internal Audit
Operations
Systems
Executive Summary
On February 24, 1993, the Securities and Exchange Commission (SEC) approved the NASD's new margin rules. The rules conform the NASD's margin rules to those of the New York Stock Exchange (NYSE) by replacing the current provisions of Article III,
Synthetic shares need to be penalized and/ or outlawed. Additionally, dark pool trading needs to be stopped. Brokerages that constantly short stocks should be required to reconcile at market value no later than 15 days following the first FTD prior to being allowed to trade openly on that stock.
Consolidation of short interest data publication, centralized on the FINRA website should be made public. Require firms to segregate short interest held in proprietary accounts vs that held in customer accounts. Report to FINRA account-level short interest (not for publication). Report synthetic short positions in both options and security based swaps. Report loan obligations from arranged
In regards to regulatory notice 21-19 regarding short positions... In my opinion, the current US financial system is highly fraudulent, with the regulatory agencies being complicit. They are complicit by complacency, with years of unchecked fraud and market manipulation through naked short selling by large hedge funds like Citadel and Susquehanna being allowed to happen with impunity. The SEC and
Shares need to have a traceable ID number, and shares that are shorted need to report that ID. I don't know how naked shorts get created by i do know that a stock like AMC shouldn't be shorting multi-millions of shares per day for months and months but never change SI% more than a few percent. There was one day this week there were literally 50 million shorts sold, 10% of the entire
Dear FINRA: Firstly, I would like to thank you for giving the investor community an opportunity to be heard. For countless years, the investor community is deeply frustrated over the continuous manipulation of our financial system. I would like to address the following deep rooted issues regarding short selling within our financial system, and suggest possible solutions to mitigate risk in the
Respectfully, Much of what FINRA is “considering” regarding the reporting of Short Selling, Reporting, disclosures, and transparency is all needed to protect not only retail investors both domestic and abroad, but to ensure there is confidence in the US stock market. A failure to close loopholes from hedge funds and create a fair and equitable platform where investors get “real” pricing, and
T+0. Instant settlement. No trading outside the lit market. No securing exchange security positions with bonded products; cash, margin, or owned stock only. Selling synthetic shorts depresses the stock price and defrauds the company in favor of market maker profits. Liquidity will come with instant settlement.
The sale of a call option and purchase of a put option with the same expiration date and strike price provides equivalent exposure to the price of a stock as a short sale. Despite this equivalence, this synthetic position does not currently create a short position that would be reportable under the current version of Rule 4560. The extent of use of this and other types of synthetic short
