Mar. 2, 2025
? Dear Members of the Investor Advisory Committee, I am writing to respectfully request that the Securities and Exchange Commission’s Investor Advisory Committee include specific agenda items related to potential stock manipulation of AMC Entertainment Holdings, Inc. (AMC) at its public meeting scheduled for March 6, 2025. Given the committee’s role in advising the SEC on issues affecting investor protection and market integrity, I believe the following topics warrant urgent discussion to address widespread concerns among retail investors and ensure a fair and transparent market. Over the past several years, AMC stock has exhibited extreme volatility, with persistent allegations of manipulation through practices such as naked short selling, dark pool trading, and failures to deliver (FTDs). These issues have eroded trust in the market and raised questions about the adequacy of current regulatory oversight. I propose the following agenda items for inclusion: 1. **Investigation of Naked Short Selling in AMC Stock:** - Discuss the prevalence of naked short selling—an illegal practice where shares are shorted without being borrowed or confirmed available—and its impact on AMC’s stock price. Evaluate whether existing enforcement mechanisms are sufficient to deter such activities and protect retail investors. 2. **Role of Dark Pool Trading in AMC Price Suppression:** - Examine the extent to which dark pool trading, which obscures transaction transparency, has been used to suppress AMC’s stock price or facilitate manipulative strategies. Consider recommending enhanced reporting requirements or restrictions to ensure fair market access for all participants. 3. **Failures to Deliver (FTDs) and Their Effect on AMC:** - Address the unusually high volume of FTDs in AMC stock, which may indicate synthetic share creation or settlement failures linked to manipulation. Propose measures to reduce persistent FTDs and ensure timely settlement to maintain market stability. 4. **Broader Implications for Retail Investor Confidence:** - Explore how these practices—naked shorting, dark pool abuse, and FTDs—affect retail investor trust in the U.S. financial markets, using AMC as a case study. Recommend actionable steps the SEC could take to restore confidence and level the playing field. These topics are directly relevant to the committee’s current agenda, particularly the planned discussion on “Disclosure of Artificial Intelligence’s Impact on Company Operations,” as they involve complex market mechanisms that influence investor decision-making. Furthermore, the topic of “Fraud Against Retail Investors” aligns with the need to investigate manipulative practices that disproportionately harm individual shareholders. The AMC case has drawn significant public attention since the 2021 “meme stock” surge, with retail investors alleging systemic abuses that remain unaddressed. Including these items in the March 6 meeting would provide a platform to evaluate evidence, hear from stakeholders—such as retail investors, market experts, and AMC representatives—and formulate recommendations for the SEC to act decisively. I urge the committee to leverage its authority to add these critical issues to the agenda and facilitate a robust discussion. This would signal a commitment to tackling market manipulation and protecting the interests of all investors. Thank you for considering this request, and I look forward to the committee’s leadership on these pressing matters. Sincerely, Junichi Nishida