Apr. 21, 2022
What regulators have essentially created is a ‘legal’ backdoor for overleveraged hedge funds to launder illegal naked short sells and FTDs. NSCC-2022-003 and NSCC-2022-801 are essentially the same proposals only with slight updates. Keep in mind these are only proposals. So, while these new rules could be beneficial to retail investors as far as eliminating naked short selling in the future, it washes away the damage already created by overleveraged hedge funds today. I strongly believe short sellers should be held accountable to closing their overleveraged positions first. If the SEC wants to protect the integrity of the market and prevent massive disruption worldwide, they will hold short sellers accountable, relieving all pressure imposed on heavily shorted stock. Failure to do so will mark the event as the greatest financial theft in stock market history. We are on the brink of massive change. History is being written; one of two decisions will be made, and the outcome will last forever.