Article: Why Crime Could Kill Crypto

Article - Media

Why Crime Could Kill Crypto

Justin Lahart and Telis Demos, 18 June 2021

The strongest argument against cryptocurrencies used to be that they had yet to show they were much good for anything. Now the strongest argument against them may be that they have become far too good at one thing: enabling crime.

Not long after the first of the private digital currencies, bitcoin, launched in 2009, crooks recognized its appeal. While law enforcement is proving increasingly adept at tracking bitcoin transactions and at times seizing ill-gotten money, the ability to make digital payments without financial intermediaries has facilitated activities such as the selling of illegal goods and services online and money laundering. In a 2019 paper, researchers Sean Foley, Jonathan Karlsen and Tālis Putniņš estimated that 46% of bitcoin transactions conducted between January 2009 and April 2017 were for illegal activity. Continue reading “Article: Why Crime Could Kill Crypto”

Article: Naked short sales and fails-to-deliver An overview of clearing and settlement procedures for stock trades in the USA

Article - Academic

Naked short sales and fails-to-deliver: An overview of clearing and settlement procedures for stock trades in the USA

Tālis Putniņš

Journal of Securities Operations & Custody, 1 January 2010

This paper outlines the process of clearing and settlement for stock trades in the USA. It pays particular attention to what happens when the seller of a stock fails to deliver that stock at settlement and describes the mechanisms to resolve delivery failures. Fails-to-deliver can occur for a number of reasons, such as human error, administrative delays and the controversial practice of naked short selling. This paper helps understand the implications of naked short selling for trade counterparties and, more generally, the effects of naked short selling on the clearing and settlement system.

Read full article.