At the House Financial Services Committee hearing last week on the GameStop debacle, there was an elephant in the room: naked short selling.
Naked short selling is when the trader does not find those shares to deliver.
At the House hearing, Rep. Nydia Velazquez (D-NY) asked about the dangers of short selling.
Because naked short selling causes the number of shares in the market to increase, which normally makes their value drop; more shares equals less value.
Now would be the time to get Biden to move on reforming the corrupt trading system, beginning with naked short selling.
The order and trade execution information it collected would identify and enable punishment of illegal trading activities, including naked short selling.
They should be asked why they haven’t implemented CAT, insisted on hard locates, and ended naked short selling. »