Article: Something ‘Systemically Wrong’ With GameStop Options Trading, Says Massachusetts Securities Regulator

Article - Media, Publications

Something ‘Systemically Wrong’ With GameStop Options Trading, Says Massachusetts Securities Regulator

Shivdeep Dhaliwal , 27 January 2021

There is something “systemically” wrong in the options trading of the stock of GameStop Corporation GME 0.1%, according to Massachusetts securities regulator, Barron’s reported Tuesday.

What Happened: The Secretary of the Commonwealth of Massachusetts William Galvin told Barron’s that he has kept an eye on the stock. “I’m concerned, because it suggests that there is something systemically wrong with the options trading on this stock.”

The publication is awaiting further clarification from Galvin on the specific nature of the problems in options trading. GameStop shares soared over 134% in regular and after-hours trading and have risen over 678% since 2021 began fueled by a Reddit forum. Continue reading “Article: Something ‘Systemically Wrong’ With GameStop Options Trading, Says Massachusetts Securities Regulator”

Paper: Counterfeiting Stock

Paper

Counterfeiting Stock

Anna McParland

The Creation of Counterfeit Shares — There are a variety of names that the securities industry has dreamed up that are euphemisms for counterfeit shares. Don’t be fooled : Unless the short seller has actually borrowed a real share from the account of a long investor, the short sale is counterfeit. It doesn’t matter what you call it and it may become non–counterfeit if a share is later borrowed, but until then, there are more shares in the system than the company has sold.

The magnitude of the counterfeiting is hundreds of millions of shares every day, and it may be in the billions. The real answer is locked within the prime brokers and the DTC. Incidentally, counterfeiting of securities is as

It is estimated that 1000 small companies have been put out of business by the shorts.

PDF (12 Pages): Paper Counterfeiting Stock