April 20, 2022
From my understanding, this rule allows FTDs to be sold/reset/whatever you want to call it, instead of actually delivered. As an investor I find this HIGHLY upsetting.
Even discounting that this allows institutions to sell something and then NOT deliver it, which is mind-boggling in the first place, this rule essentially creates infinite supply.
How can a Free Market operate with infinite supply? When supply is infinite, demand can never keep up, and the value of the asset will plummet. If an institution can choose to flood the market with sales that they never intend to deliver then EVERY company on the exchange is at risk and there is ZERO \"price-discovery\".
This trend of \"Liquidity above all\" is counter-productive to actual company valuation and serves only a handful interests, and none of those interests are retail investors or the listed companies themselves.
End this. Let the market operate freely based on supply and demand alone, as it should.