Chapter
Regulation SHO and Failures to Deliver: The Persistent Problem with Naked Shorts
14:02 - 17:56 (03:54)
The failure to deliver shares owed to buyers, known as Failures to Deliver (FTDs), is a persistent problem in the market. Firms like Citadel and Virtu can continuously fail to deliver shares without penalty due to a loophole in Regulation SHO, which allows them to be exempted as bonafide market makers.
Clips
The practice of failures to delivers or FTDs in the stock market allows firms to continuously fail to deliver shares without consequences, depriving investors of their rightful shares.
14:02 - 17:56 (03:54)
Stock Market
Summary
The practice of failures to delivers or FTDs in the stock market allows firms to continuously fail to deliver shares without consequences, depriving investors of their rightful shares. This flaw in the market is exacerbated by the bonafide market maker exemption to RegShow, utilized by firms such as Citadel and Virtu.