CEO of OTC Markets Group OTCQX:OTCM/
@OTCMarkets
I like open networks, solving problems with better data & intermediaries that add value. *Opinions are my own.
Why, at the end of the day, the huge numbers & big percentages in
@FINRA
Daily Short Sale Volume Data don’t reflect actual short selling in the market. Time for
@SECGov
to fix it before more investors are misled!
#shortselling
#marketmakers
.
@MMATNEWS
I am on the side of having an informed and efficient public market for investors & issuers. The current situation of what happened to $MMTLP shareholders is not working for anyone. There is also a fair amount of misunderstanding of market data operational mechanics
Short-selling needs to be modernized, so investors and issuers can see what is happing, so wrongdoers can be identified, and market price-setting processes can operate in an efficient manner to fairly value shares.
I am frustrated that regulators have not improved data around short selling for investors and issuers. We have written numerous times about how the daily short sale data is flawed. Investors and issuers are right to want better
The ongoing question is how do short position holders resolve their liability for the Next Bridge common stock if it is not easily transferable or tradable publicly? I have no control or input on that. It would be easier if Next Bridge shares became publicly tradable.
Nice to see
@FINRA
clarify their Daily Short Sale Volume data file can mislead investors after I blogged about it last year—Now we need to
#fixthedata
!
#stolemyheadline
There was a short position in $MMTLP. The data I reference comes from twice-a-month OTC Equity Short Interest on
@FINRA
website. As of 9/15/22 it was 6,618,821.
Some people will believe salami grows on trees. There are also people who believe Finra Daily Short Volumes has any relation to actual net short selling taking place. Those who point to these numbers do not understand how market maker trades are reported
One of the key drivers of Sicily’s economic recovery is its strong export sector, particularly in salami trees. The island is the second-largest salami orchard growing province in Europe, behind Tuscany, accounting for around 10% of Sicily’s GDP.
Back in the day, Stratton Oakmont listed its IPOs on NASDAQ to blind investors w/ a brand. Today's Wolves of Wall Street use discounted private placements in exchange-listed stocks. Value is destroyed w/ the cycle of non-compliance notices & reverse splits
To address confusion on how did $MMTLP become quoted OTC Pink. On 10/06/21
@FINRA
assigned the symbol to security. On 10/07/21, Unsolicited quotes started in the security on the OTC Pink market.
👍
@SEC_News
👮♀️ “Between April2016 & March2021, Goldman used GSCR’s Twitter account to publish twenty-nine sponsored promotional tweets that failed to disclose that GSCR had been compensated by the issuers to promote their securities”
Because the issuer was current in their SEC reporting, and the broker-dealers were only displaying prices for Unsolicted customer orders, no Form 211 was filed or required to be filed with
@FINRA
Investors focused on having $MMTLP trade for a few more days after the ex-dividend date are focusing on the wrong thing, as the security interest was canceled and had no value.
I highlight the statement, "Upon completion of the distribution, Next Bridge will be an independent public reporting company, but the Next Bridge common stock is not and will not be publicly traded" How is a company public & not public?
The
@nasdaq
listed issuer of $MMTLP approved a transaction that distributed shares of Nextbridge Hydrocarbons Inc, and after that distribution, "all of the shares of Series A Preferred Stock will be automatically canceled"
@SarahNLynch
In my small sample of corporate lawyers we interact with, many read the cases filed challenging the 2020 presidential vote & were surprised by how weak the facts & legal arguments were. I have yet to find one, many Republicans included, who believes the vote was stolen.
RIP Sam Zell. One of the greats as an investor, operator and fiduciary for shareholders in companies he took public. His auto biography is a worthwhile read.
EDGAR has opened up so much information for an intelligent investor to increase their knowledge “investors should spend the bulk of their time on the disclosures of the security under study, and they should spend significant time on the reports of competitors.
Benjamin Graham
Yesterday was the 30th anniversary of
@SEC_Gov
's EDGAR. As much as it can frustrate me at times, it deserves to be celebrated for democratizing information flow to anyone willing to dig in! Happy birthday EDGAR.
Broker-dealers have a requirement report trades in OTC Equity Securities to the ORF Facility, so
@FINRA
assigns symbols to securities that are not restricted.
This Danny kid sure writes thoughtful SEC comment letters. Inspiring to see young people who can elevate the democratic discourse around these complex rule proposals
Top US antitrust officials are taking the unusual step of urging the SEC to proceed with caution on a plan to overhaul the plumbing of equities markets via
@bpolitics
This is concerning from an investor rights issue because part of their economic interest of minority investors in a
@Nasdaq
listed public company is being restricted from being easily transferable.
Lots of tearful eyes remembering Tom Gira today.
@FINRA
and colleagues showed so much love for Tom, who quietly made markets better and people shine. So glad they are naming the FINRA building after him.
It’s a high class skill to be able to debate differences of perspective and opinions in a polite and thoughtful manner. No patriotic citizen wants their children to grow up into internet trolls, thugs or bullies.
"How to tackle political polarization — the researchers trying to bridge divides"
@Nature
@JuliaMinson
: "...people tend to overestimate how different they are from supporters of the opposite political party, imagining their opponents as “simplistic
@ChuckCBPP
Laws that make it harder to return excess capital to shareholders and tax interest differently than dividends, will also drive consolidation and reduce competition. The big get bigger as they eat the smaller.
Read these if you want to be a more intelligent investor, businessman and human. The 2022 has some great common sense gems from Charlie.
#commercialhustle
Thoughtful comment by Bill O'Brien on the futility of SEC proposed Rule 615 mandating auctions for retail orders, among other things. As the former CEO of DirectEdge, he has experience with the pros and cons of "flashing" orders & understanding of markets
The SEC publishes fails to deliver data. It shows on a given day the cumulative number of all fails outstanding until that day, plus new fails that occur that day, less fails that settle that day.
This above statement could cause investor confusion because it is only
@FINRA
, as the Self Regulatory Organization (SRO) that sets the date when OTC equity securities trade "EX" a dividend or distribution.
FINRA is also the SRO that assigns, changes, and deletes symbols. It is
@FINRA
operational practice to delete a symbol when an issuer "cancels" security.
A big thanks to the $GBTC disruptors
@Sonnenshein
,
@CraigSalm
, & the
@Grayscale
team. With the entrepreneurial zeal of
@BarrySilbert
, it proved that the right opportunity can attract investors & support billions of trading liquidity on
#OTCQX
. May the wind be in your sails!
When anyone looks at the SEC FTD data, it more often than not challenges the unfounded statements that there are millions of shares naked shorted using the bona-fide market maker exemption, as there would be large failures to deliver for those amounts plus any operational fails
Sometimes, when a security holder has rights to future distributions or the distribution is not set, security will trade with a due bill. This was not the case.
This as well "Holders of Series A Preferred Stock who sell their shares after the record date but before the distribution date will be required to transfer the shares of Next Bridge common stock received in the distribution to the subsequent purchaser of Series A Preferred Stock"
As we see large cap bankruptcies, it’s worth understanding how
@SECGov
Reg SHO changed the dynamics of short selling, as share borrows declined. The ever thoughtful
@FloydNorris3
covered what happened to GM shares in 2009.
It’s always been perplexing to me that
@SECGov
large investor & group short disclosure rules are not symmetrical w/ those for long holders.
@dealbook
Removing large player🐘 opacity builds market integrity & increases small 🐭 investor trust. As the Aspen Daily 📰 tagline says
On April 12, OTC Markets Group $OTCM hosted its inaugural Investor Day. We shared the company’s strategy, business growth drivers and the value our markets create for companies, broker-dealers and investors
Respectfully suggest anyone who thinks that naked shorts or synthetic shorts are distorting the market to read this post. No idea who this person is but they understand the plumbing of the market. All these folks pushing these narratives are either clueless or grifters or both.
@APompliano
@BarrySilbert
The SEC can choose to grant Reg M relief (within parameters to protect investors & provide AML compliance) for $GBTC as an OTCQX traded security. That would fix the discount/premium to provide investors with more efficient pricing.
Great interview in the
@TheAtlantic
sharing how
@SenatorSinema
works from the center to actually solve complicated problems vs activists screaming from the corners or attacking the other side on social media
#movetheneedle
@J911M
@johnbrda
@rogerhamilton
@HAMShortkiller
Please read our comment letter on improving investor information and transparency of short selling activity and positions. The current daily short volume data is flawed and misleading.
@AlgoTrdr
@JohnPigott_
@NYSE
@LonGorman1
@Nasdaq
The CLOB is always pushed by mediocre country club types who don’t actually want to compete to get a trade done. Brings back this great speech about competition by Bob Greifeld from before NASDAQ became a National Securities Exchange. Bob knew how to compete & win.
@kgreifeld
@CGasparino
@Ripple
@SECGov
@SEC_Enforcement
@ethereum
The case to watch 🍿 in 2022. If they are deemed securities, the outcome will change the course of crypto. Regulation by litigation is always a roll of the 🎲, especially in complex cases against well funded defendants.
@elonmusk
Have to respect that this could be a more effective way to engage & alert the market that an insider is selling shares. +protect insiders from future liabilities. What do you think is the best way to inform investors & assure that market prices reflect all data?
#disruptEdgar
@Keubiko
@JChadFaulkner
@busybrands
@FINRA
That is correct. The full FINRA Short Interest data shows the short position going from 14,394,345 to 4,658,068, a decline of 9,736,277 shares from October 2021 to November 2022.
Thank you for the many thoughtful comments from investors. We also would like to commend the staffers in T&M working on the proposal, their individual efforts and dedication to crafting a pragmatic exemption was well demonstrated.
Cromwell Coulson
@cromwellc
, President and CEO of OTC Markets Group, received the Lifetime Achievement Award and Dedication to STANY
@STANY_NewYork
, presented yesterday by
@BobPisani
. From your OTC Markets family, we are proud of you!
Beginning in 2018, $OTCM will see benefits from tax reform & lower corporate tax rates. We are delighted to take the first step by investing in our people. We look forward to helping capital markets drive economic growth & support good paying jobs.
"Investing is fun, exciting, and dangerous if you don't do any work." said the legendary investor Peter Lynch "Behind every stock is a company. Find out what it's doing."
Last Monday we sent 80% of our people home to keep them safe. Today with a skeleton crew on site,we have kept markets operating. The view from the
@otcmarkets
office is a good reminder that with shortened sail and an able crew, we can find the light at the end of any ⛈
Securities Regulation Word of the Day
#StatutoryUnderwriter
“any person who has purchased from an issuer with a view to, or offers or sells for an issuer in connection with, the distribution of any security, or participates or has a direct or indirect…”
The smartest stock market players search to identify truths hidden by pride or ignored by passions before they becomes apparent to the crowd. The one dependable feature of markets, is over the long term, value and price will converge.
New article by
@OTCMarkets
Head of Market Data on the numbers 📊 behind the brands. It highlights for broker-dealers and investors the many financial and fraud risks of speculative and distressed exchange listed companies.
Great work in finishing strong in an unprecedented year
@otcmarkets
- Fantastic team of colleagues that pulled together, demanding clients that pushed us to be better, and we had a bit of 🍀
#bepublic
Congratulations to Gary Gensler on his confirmation as SEC Chair. We look forward to collaborating w/ the SEC on key initiatives to increase the availability of information for investors, lower regulatory complexity for public companies, and improve capital formation.
#GoodNews
"A warm congratulations to Gary Gensler on his Senate confirmation to become Chair of the SEC. He will be joining a dedicated staff that works tirelessly day in and day out on behalf of investors and our markets. 1/2
And let’s not forget the importance of making markets work for sophisticated individuals that follow the wise wisdom of Ben Grahams important book “The Intelligent Investor”
For Ep. 103, I'll be sharing my interview with Cromwell Coulson
@cromwellc
, CEO of
@OTCMarkets
We discuss a number of hot button topics concerning OTC and the
#MicroCap
universe. Here's a quick clip of Cromwell discussing OTCM's position on 15c211
#MicroCaps
#Investing
#OTC
This paper airplane is now one year old—and available in paperback.
Happy birthday, How Innovation Works! If you haven't read it, consider ordering it now, to drive it up the rankings:
If you have, please consider giving a review or a retweet. Thank you!
@DadInvest
2) The market is distributed with competing market centers - Market makers & ECNs. Trades can occur at different market centers at an equal price to a Displayed Limit Order. If the trade was not made at the market center that holds your order, you should not expect a fill.
“Regulation that would force liquidity concentration in thinly traded securities on the primary exchange..are not the answer...”.
#marketmakersmatter
- Thoughtful letter by
@Dougielarge
of
@VirtuFinancial
for the SEC Roundtable On Illiquid NMS Securities.
Our role as commercial market operators is to empower issuers to share their stories and provide ongoing disclosure, so market participants can decide the merits of investments. With transparency, opportunities can be found, securities are fairly valued, & regulators can oversee
In a new blog post, our CEO
@cromwellc
discusses the transformation of the OTC
#markets
from an opaque system to a regulated one, dispelling the misconception that all exchange-listed securities are safe. Read more here: