Welcome back to the channel everyone, the portfolio manager, peter han, has given an update on amc. So today i want to talk about that and explain what he means by an alternative display facility. Trust me guys you do not want to miss this video, so stay tuned and let's make some money, but guys before i dive into the video. I just want to give a massive shout out to the 1700 of you that have currently dinged that notification bell, because you guys are always the first to watch a new video as soon as it's released so guys be sure to drop a like down below subscribe To the channel and ding that notification bell, so that you don't miss another video just like this one, and now i want to dive straight in with the key information.

So i hope everyone had a restive weekend here in western canada. Smoke from wildfires is making air quality an issue, not sure that it compares to the floods in western europe. I had several amc shareholders from germany reach out to me with kind words last week and hope they and their families are safe. So i was thinking no matter how this meme stock play ends up.

I think wall street needs to understand something. Technology is a double-edged sword. It drives efficiency in trade processing, increases volumes and offering access to easy trading to retail is a further huge boost to volumes, because market makers earn a spread processing transactions, the more people trading, the better the revenues, because the tech has outpaced the regulation guiding the market. It's created many grey areas, grey areas which, when examined under a bright light, usually look very dark and suspect.

It's easy to see how cutting corners leads to some ventures into the gray zone. The desire to grow profits, however, makes it habit-forming and then a dependency on the flip side. The typical retail trader today is not the fat cow of the 1990s day trading era. Many of this generation of traders are very tech savvy.

More importantly, many have a distrust of institutions and a chip against banks due to 2008 and they determined on the flip side. The typical retail trader today is not the fat cow of the 1990s day trading era. Many of this generation of traders are very tech. Savvy, more importantly, many have a distrust of institutions and a chip against banks due to 2008 and they're determined to level the playing field any way they can.

So i was thinking a typical hedge fund has what 50 to 100 people take away. Support and admin staff leaves, with a few dozen vps associates and analysts. They can't be everywhere only so much time in a day, even if they aren't, but out, like their bulge bracket. Friends at jp or goldman there's about 5 million amc shareholders and plus in other meme holders too.

The most active holders communicate on social media platforms. A lot of them also view finding out new information as a highly competitive process like when people in my younger days compete to figure out who would get a rose every friday night, for example, consider this recent retail trader discovery. I certainly would not have looked for it. It's been widely rumored for months now that there was an off-market set of books showing amc had a vastly different price than that it reported on the lit exchanges.

Fantasyland many would shout the same. People telling me to get mental health yeah troll, i'm milking this. However, it just so happens that there's finra's alternative display facility. This is supposed to be trade reporting.

Only. However, an amendment sr 2016031 came out with section 601 away from the market sales and it states that trades can be put into this alternative display facility if they meet the exception that the transactions occur without reference to current market pricing. So, for example, say: two: hedge funds wanted to trade where one wanted an amc share and the seller wanted six thousand dollars of etfs well that meet the criteria, because it's without reference to the current market pricing, the collective brainpower of the retail sector is scary and They are owners and so motivated. So what is an alternative display facility and, more importantly, what is finra's alternative display facility? Well, an adf is an electronic trade reporting system, developed and managed by the financial industry regulation authority or finra.

It's considered alternative because it's a way to get information about stock prices and trading history that would otherwise have been found directly by looking at a specific stock exchanges reporting system. For example, each stock exchange such as the new york stock exchange, owns and operates its own trade reporting facility or trf. This trf will list the quotes or prices to buy or sell a stock and completed trades made in that specific stock exchange. The adf is different in that its system compiles quotes and trading data from all registered members who are trading on several different stock exchanges.

More importantly, an investor can trade with registered brokers directly through the adf system, regardless of the listed stock exchange and also regardless of the current market price. Therefore, compared to a trade reporting facility, the alternative display facility is a more comprehensive system that provides a lot more information about the overall stock market. So what is that section 601 well section 601 away from market sales. So what is an away from market sale? Well, an away from the market sale for the purpose of these rules applies to transactions that occur without reference to current market pricing and investment, commercial or trading considerations.

Therefore, you can make an off-market sale through the adf, even if it doesn't make commercial sense or trading sense, because it's not with reference to the current market price. Given the underlying goals of transaction reporting, finra interprets the exception from the trade reporting rules for away from the market sales very narrowly, and the mere fact that a trade has occurred outside of the current inside would not in itself qualify for the exception, gifts and inheritances. Where the shares must be transferred by giving normal consideration would be deemed away from the market sales, for example, party one wants to give party to 50 shares of abcd security, but to have the shares transferred correctly party 2 must buy them for a nominal value. That is unrelated to the share price.

However, would the sale of a block of stock at a discount, reflecting the risk in purchasing such a large block, constitute as an away from the market? Sale? No trades at a discount are not considered away from the market sales and therefore all the regulations still have to be followed. Therefore, two parties can't just buy dmc stock or large volumes of the amc stock at a discount or a premium, because that would technically have to still be reported. However, two parties could gift a large amount of amc stock and then make a non-trade related payment or just an off-market payment. For example, how should an away from the market sale be reported? Well, members should report away from the market sales by submitting a non-taped report with a specific trade report modifier to denote the transaction is reported for regulatory transaction fee assessment purposes and therefore these transactions won't really be reported in the same way that typical transactions are through A lit stock exchange, therefore, what peter han is saying is that hedge funds could be trading amc stock between the two of them off the lit exchanges at a separate book price, but why would a hedge fund want to do that? Why would a hedge fund want to buy some amc stock separately for a larger price than that's listed on the lit exchanges, because, obviously, if a hedge fund just goes into the open market and flat out, buys 10 million shares, the amc price is going to skyrocket From 30 to well over a hundred dollars that in itself is going to enact the short squeeze and cause many other hedge funds to become liquidated, and the amc price will skyrocket.

Well, above that, therefore, hedge funds could be trading off exchange and making off-market sales and not having to report them by trading amc at a different price compared to what's on the lit exchange as to not impact the lit exchange market price for amc, we don't know Specifically, what price they are trading amc for. It's been rumored in the past tons of different prices between 500 and 5 000 a share, but no one really knows at the moment. Therefore, it is definitely possible, though, that hedge funds are trading off typical, lit exchanges, especially in dark pools and non-reporting trade facilities. So they don't impact the exchange.

Price of amc guys be sure to. Let me know down in the comments below what do you think about hedge funds, potentially trading in an alternative display facility? Do you think that's fair? Do you think they should just be trading on the late exchanges and just make any impacts on the amc price? That would normally happen also guys, if you haven't already i'd, really consider checking out the patreon and the private discord linked in the description below to talk about amc and other stocks share due diligence and new stories too, and as always guys, if you enjoyed this video, Be sure to check out some of my others, alternatively, subscribe to the channel and ding that notification bell, because that way you'll be alerted. When i upload a new video cheers.