Feb. 06, 2022
To prevent predatory naked short selling in the markets there needs to be Federal regulation on securities that were marked as "Fail to Deliver." I understand the T+3 rule for reasonable accommodations locating shares of stock. However, once a security has not been delivered by T+3, the entity delivering the share should have no choice but to deliver it, at any price by market close that day. Due to the lack of regulation of delivering securities, malicious financial entities are then capable of essentially creating shares that never existed. The recipient sees the shares in their brokerage account and has no way of knowing that the shares were never delivered. Malicious financial entities will never deliver these shares and can create theoretically unlimited money by selling shares that don't exist to retail investors. Rules must be changed to regulate the delivering of shares to ensure a fair market.