Purposefully creating synthetic shares of a security for the purpose of naked short selling to manipulate the market price for the security should be a felony. Not a crime that gets a fine, but a send-you-to-prison FELONY! There is absolutely no reason why this should be allowed to continue. It never should have been allowed in the first place. How can a market be free and fair when large traders like hedge funds can create shares of securities that don't exist, and the sell them to people for real money. That goes against the very concept of a security. It undermines a free and fair market, and it creates situations like AMC/GME that can create systemic risk and destabilize the entire securities market. Outlaw it immediately!
Aaron Merickel Comment On Regulatory Notice 21-19
Purposefully creating synthetic shares of a security for the purpose of naked short selling to manipulate the market price for the security should be a felony. Not a crime that gets a fine, but a send-you-to-prison FELONY! There is absolutely no reason why this should be allowed to continue. It never should have been allowed in the first place. How can a market be free and fair when large traders like hedge funds can create shares of securities that don't exist, and the sell them to people for real money. That goes against the very concept of a security. It undermines a free and fair market, and it creates situations like AMC/GME that can create systemic risk and destabilize the entire securities market. Outlaw it immediately!