Let me begin by stating I believe the apparent inability to administer existent provisions regarding shorting and naked shorting demonstrates a gaping hole in the system. FINRA and all related regulatory bodies have ignored the scams played by the hedge funds in hiding their activities as well as permitting a hedge fund to be the major market maker in a security they intend to pummel and drive
I believe any additional oversight or reporting requirements in regard to short positions would be a net positive. Abusive shorting of securities has both introduced idiosyncratic risk and reduced faith in the integrity of United States financial markets.
I have invested in plenty of your so-called complex instruments with a small account and have yet to blow any of them up. Infact I regularly use them as a way to hedge and short markets instead of taking the risk of actually shorting and being open to a theoretical infinite loss.
FINRA Reminds Firms of Their Obligations When Reporting Large Options Positions
The proposed amendment to FINRA 4560 is a laughable attempt at improving naked short selling internal control measures, actual regulatory action, or really any kind of further obligation on the part of the involved broker-dealers. There have been hundreds if not thousands of regulatory "actions" taken by FINRA related to short sale, and misreporting/misclassification of shorts. This
These rules are essential for retail traders to have a chance at Making money in the market by themselves. Hidden short and synthetic short position set up retail for failure. It would be great to see FINRA adopt and enforce these rules
I've been investing in inverse and leveraged funds for the last 2 years. They're a valuable tool to gain exposure to other sides of positions, such as short ARKK (SARK) without having to worry about things such as options or short squeezes. Please reconsider any restrictions you may be considering.
I would like to see better enforcement of short sale rule (SSR) used by hedge funds. I would like to see more frequent public reporting of short positions and more detail in public reports of SSR movements.
Comments: I like to use these leveraged products for short duration trades in an efforts to enhance returns of my core portfolio. I also use leveraged inverse funds to hedge my long positions and I prefer it to shorting or buying puts.
Please do not change or restrict my ability to trade them.
We need daily report on short positions, and a overall crackdown on naked shorting and dark pools. Fines should be served with jail time, if you fine someone a few million, when they make billions, there is no incentive to stop.
