More transparency in short positions is necessary for a fair market. There are currently too many methods of obscuring the real short interest of certain securities which creates an unfair environment for retail investors. FINRA should make more information about short sales public as well as investigate further into how synthetic shares are being created and hidden.
Summary
FINRA requests comment on a proposal to provide additional transparency into delayed Treasury spot trades in corporate debt securities—i.e., corporate bond trades where the dollar price of the trade is based on a spread to a benchmark U.S. Treasury security that was agreed upon at an earlier time on the same day. The proposed changes would provide for immediate transparency into the size
Executive Summary
On November 17, 2000, the Securities and Exchange Commission (SEC) adopted Exchange Act Rule 11Ac1-5 ("Rule"), which requires "market centers" that trade national market system securities to make available standardized, monthly reports containing statistical information about "covered order" executions. The Rule is intended to promote visibility
" Publication of Short Interest for Exchange-listed Equity Securities" Why are firms are currently allowed to hold any unreported open short positions? In the OTC market, one firm's large short position could potentially destroy a company. " Content of Short Interest Data" The more data points you collect and publish, the better. A free and fair market means transparency
Greetings, Not sure why FINRA has not come out with a report in the last three quarters, but the information it provides is completely valid and incredibly important to me as an individual investor. Also, I wish their was some working enforcement in place to discourage naked short selling and the unethical trade practices being used to manipulate a stocks true value.
Financial Industry Regulatory Authority, Inc. (“FINRA”) is filing with the Securities and Exchange Commission (“SEC” or “Commission”) a proposed rule change to amend Rule 8312 (FINRA BrokerCheck Disclosure) to release information on BrokerCheck® as to whether a particular member firm or former member firm is currently designated as a “Restricted Firm” pursuant to Rule 4111 (Restricted Firm
REQUEST FOR COMMENT
Disclosure of Mutual Fund Expense Ratios in Performance Advertising
Comment Period Expires: January 23, 2004
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Please approve the new rules to tighten up short interest reporting requirements. There are too many loopholes that short traders use to hide and obfuscate their true short interest (eg hiding shorts in deep OTM put contracts) which puts retail traders at an information disadvantage, which is anathema to free market principles.
For 20 years, FINRA’s Trade Reporting and Compliance Engine, known as TRACE, has contributed to reduced trade execution costs, facilitated price formation, aided regulatory programs and protected investors, as detailed in a recent blog commemorating this milestone anniversary. As an economist, I’d argue TRACE’s impact extends. For me, some of the real impact is in the research it has enabled.
To whom it may concern at FINRA, I am not a very eloquent person, so please note that I have taken bits and pieces of comments and copy/pasted them. Just because I have not articulated these thoughts myself, does not mean that I am any less passionate about the proposed rule changes. Since beginning my journey as a retail investor and learning more about our financial systems I have lost complete
