Month: June 2021

GWFS Equities Fined $1.5M For Failure To Report Suspicious Activity On Accounts

Harion Camargo, 08 June 2021

Thanks to its ‘significant’ cooperation with investigating authorities, and subsequent implementation of remedial measures, GWFS Equities Inc. (GWFS) appears to have been spared some embarrassment and possibly stiffer penalties as the Securities Exchange Commission (SEC) accepted its offer of a settlement.

Colorado-based GWFS is a subsidiary of Great-West Life & Annuity Insurance Company and services retirement plans sponsored by employers. It has been under investigation for violation of federal securities laws related to filing reports of suspicious activities. Continue reading “Article: GWFS Equities Fined $1.5M For Failure To Report Suspicious Activity On Accounts”

06/08/202106/12/2021

Article: Wall Street languid as “meme stock” frenzy hogs spotlight

Wall Street languid as “meme stock” frenzy hogs spotlight

Stephen Culp, 08 June 2021

Wall Street stocks wavered near the starting line on Tuesday as a lack of clear market catalysts kept institutional investors on the sidelines, while retail traders kept the rally of so-called meme stocks alive. All three major U.S. stock indexes were little changed, with the S&P (.SPX) and the Dow (.DJI) hovering within 1% of their record closing highs.

The tech-laded Nasdaq (.IXIC) fared best, with Amazon.com Inc (AMZN.O) and Apple Inc (AAPL.O) providing the biggest boost. The CBOE volatility index (.VIX), a measure of investor anxiety, touched its lowest level in over a year. Continue reading “Article: Wall Street languid as “meme stock” frenzy hogs spotlight”

06/08/2021

Tweet by Susanne Trimbath PhD on Twitter

NSG, Part I: "The more rules that are put in place to support this flawed infrastructure, the more the risk created by a build-up of unsettled trades in the system will look like the asbestos of the 21st century: https://t.co/jRfqTkpR4U

— Susanne Trimbath PhD (@SusanneTrimbath) June 7, 2021

Article: Clover Health jumps 13% as ‘meme stock’ rally builds

Clover Health jumps 13% as ‘meme stock’ rally builds

Aaron Saldanha, 08 June 2021

The social-media driven rally has sent shares of companies including AMC Entertainment Holdings Inc and GameStop Corp zooming this year in a bid to squeeze Wall Street short-sellers, and has prompted the U.S. Securities and Exchange Commission to say it was looking into signs of market manipulation.

Medicare-backed insurance seller Clover and electric-truck maker Workhorse Group Inc are among the most shorted stocks across U.S. exchanges, with Clover being the target of short seller Hindenburg in February. Continue reading “Article: Clover Health jumps 13% as ‘meme stock’ rally builds”

Article: Are the big meatpackers corrupt? Growing consensus in Congress

Are the big meatpackers corrupt? Growing consensus in Congress

David Murray, 08 June 2021

A different decade, a new administration, a shuffle in Congressional leadership. Much has changed across the U.S. political landscape in the last several years, yet one concerning issue has lingered for nearly half a century … corporate concentration within the meatpacking industry.

“The time has come for the government to determine whether the stranglehold large meatpackers have over the beef processing market violate our antitrust laws and principles of fair competition,” states a recent congressional letter to U.S. Attorney General Merrick Garland. “… four large meat packing companies control over 80% of the processing market in today’s economy and are seemingly able to control prices at their will, or even defy expectations of market fundamentals. Continue reading “Article: Are the big meatpackers corrupt? Growing consensus in Congress”

Article: Hong Kong to test linking China’s digital yuan with domestic payments

Hong Kong to test linking China’s digital yuan with domestic payments

Reuters, 08 June 2021

Hong Kong is to test connecting China’s digital yuan with its domestic payments network, officials said on Tuesday, the second stage of trials of China’s digital currency in the financial hub.

China’s e-CNY is one of the most advanced central bank digital currency (CBDC) projects among major economies. Chinese officials say the project will be initially domestically focused, but cross-border trials are also under way in Hong Kong. Continue reading “Article: Hong Kong to test linking China’s digital yuan with domestic payments”

Article: Austrac Accuses Australian Casinos of Money-Laundering

Austrac Accuses Australian Casinos of Money-Laundering

Niji Narayan, 08 June 2021

The Australian Transaction Reports and Analysis Centre (Austrac), a state-run financial intelligence organization, has leveled allegations against many of the major land-based casinos in the country.

Crown Resorts, Star Entertainment and SkyCity Entertainment Group are among those who have received notices. Austrac has also reportedly contacted National Bank of Australia (NAB) regarding the matter. Continue reading “Article: Austrac Accuses Australian Casinos of Money-Laundering”

06/08/202106/08/2021

Mirror: SEC charges trading firm with naked short selling

Video

06/08/202106/10/2021

Article: Bitcoin’s reputation as a government-free zone is in question after the US snatches $2.3 million from hackers

Bitcoin’s reputation as a government-free zone is in question after the US snatches $2.3 million from hackers

Harry Robertson, 08 June 2021

Bitcoin’s fans have long argued that its decentralized design makes it a currency free from government control and manipulation. But on Monday, the US Justice Department said it had reached into a bitcoin “wallet” and swiped back $2.3 million that Colonial Pipeline had paid to hackers after a ransomware attack in May.

Analysts said the dramatic move raised questions about just how free from state oversight bitcoin really is.
“The rapid move by US agents in tracing and tracking the ransom paid, then retrieving it after gaining access to a private key to unlock the bitcoin wallet, is a blow to crypto fans who have lauded its untraceable nature,” said Susannah Streeter, senior investment analyst at broker Hargreaves Lansdown. Continue reading “Article: Bitcoin’s reputation as a government-free zone is in question after the US snatches $2.3 million from hackers”

06/08/202106/10/2021

Article: Mining Companies Call Themselves Green in Push for Investor Cash

Mining Companies Call Themselves Green in Push for Investor Cash

Scott Patterson, 08 June 2021

Mining companies are trying to tap into the flood of cash targeting green investments by touting their production of materials that go into wind turbines, power lines and batteries.

They are playing down the environmental impact of their operations and, for many of them, their big businesses mining coal.

The International Energy Agency said in a May report that while coal mining will decrease dramatically in the coming years, “the mining of minerals needed for clean energy transitions increases very rapidly” in a global economy focused on bringing down carbon emissions. Continue reading “Article: Mining Companies Call Themselves Green in Push for Investor Cash”

Article: “Get Shorty” – FINRA Requests Comment on Proposed Significant Changes to Short Position and Stock Loan Reporting

“Get Shorty” – FINRA Requests Comment on Proposed Significant Changes to Short Position and Stock Loan Reporting

Sidley Austin LLP, 07 June 2021

On June 4, 2021, the Financial Industry Regulatory Authority (FINRA) published Regulatory Notice 21-19 (the Notice), which requests comment on certain significant proposed changes to short position and stock loan reporting. Currently, FINRA Rule 4560 generally requires clearing firms/prime brokers that are FINRA members to report to FINRA twice per month aggregate settled short positions in firm and customer accounts, subject to certain exceptions. The short interest data collected by FINRA includes the reporting firm’s current aggregate settled short positions for each security and any short position changes at the firm since the prior reporting period. FINRA has requested comment on proposals that would, among other things, (i) increase the frequency of short interest reporting from twice per month to weekly or even daily; (ii) require clearing firms to report synthetic short exposure (e.g., long puts/short calls) in firm and customer accounts; (iii) require clearing firms to report loan obligations resulting from arranged financing and enhanced lending programs; (iv) require clearing firms to report to FINRA for regulatory purposes a report of daily allocations of fail to deliver positions under Rule 204(d) of Regulation SHO; and (v) consider requiring FINRA member firms to report to FINRA (for regulatory purposes but with an eye toward eventual public dissemination) certain information on stock loans.

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Graphic: Whose Share Is This, Rules Don’t Matter?

Graphic

Article: Meme Stocks Mania: What Is ‘Naked Shorting’ and Why Is It Trending on Twitter?

Meme Stocks Mania: What Is ‘Naked Shorting’ and Why Is It Trending on Twitter?

William White, 07 June 2021

Naked shorting is trending on Twitter (NYSE:TWTR) today and it looks like there’s no end in sight to the meme stock mania as users react to the news that kicked this all off.

All of the excitement around naked shorting started after CNBC host Melissa Lee mentioned that the practice was taking place with shares of AMC Entertainment (NYSE:AMC) stock. The host said the following while discussing the matter.

“There’s a lot of people, a lot of short sellers out there borrowing stock they didn’t have.” Continue reading “Article: Meme Stocks Mania: What Is ‘Naked Shorting’ and Why Is It Trending on Twitter?”

Article: AMC stock jumps nearly 15% as retail-fueled rally stretches to another week