Welcome back to the channel everyone today, i want to talk about the july failed, delivered data. Now, there's a lot of weird and interesting things going on with this data, so i wanted to do a full breakdown. 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 3 200 of you that have currently ding 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, if you haven't already 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 through the second half of june, we saw a very high level of failure to deliver 4 million shares that day, 3.6 million shares on the 22nd 3.7 million shares there, even as high as 4.4 million shares in a single day. So what happened in july? Well, in july, we saw the fail to deliver start off very strong 3.5 million.

It then fell to 2.2 million and then just completely evaporated into thin air down to 41 000 and it kind of held at that level for the rest of the first half of the month. So how did that happen? If we look back at the threshold securities list on the 8th of july and the 7th 6th 5th and so on before then, amc was on the threshold securities list. But if we go back and have a look at the number of failures to deliver on the 8th of july, we saw only 9 000 failures deliver. So how was it on the threshold securities list if there was only 9 000 ftds because, as we already know, in order to appear on a threshold securities list, the security must be registered with the sec and have had five or more consecutive days of failed settlement.

The failed settlements must also be of a size, totaling, 10, 000 shares or more or at least 0.5 of the security shares outstanding, as in 0.5 percent of the entire flow amc has a float of over 513 million shares and therefore to get on that threshold securities List needs at least 2.5 million ftds on a daily basis to be on the list. So how was it on the list if there was only 9 000 fdds well for that, we need to dig into the technicalities of the threshold securities list. What the threshold list does not reveal the threshold list is simply a list of the companies which, for that particular day qualify for threshold status. The threshold list does not.

It does not reflect the short position in a particular security, but only reflects the failures to deliver. For long and short positions, it does not mean that any improper short sale or long sale activity has occurred or is occurring for the securities listed, and it does not reflect only failures to deliver, because a security may remain on the threshold list longer than 13 days. After broker, dealers close out all delivery failures, since the security stays on the threshold list for five consecutive days. If we have a look at the first of july, we can see that amc had 3.5 million fpds and therefore it was on the threshold securities list.

But then, if we count five consecutive days day, one day two day three day four day, five, therefore amc was only taken off the threshold securities list on july, the ninth, when the failed delivers had subsided below that 0.5 level for five consecutive whole days. Now you may say: hang on tom, how on earth did the hedges and the market makers and the clearinghouses get amc off the threshold securities list? Now you may remember back to one of my previous videos, where i explain the second transaction that they use to reset the clock, assuming that xyz is a hard to borrow security and that trader a or its broker dealer is unable or unwilling to borrow shares to Make delivery on the short sale of actual shares? The short sale may result in a fail to deliver position at trader a's clearing firm, rather than paying the borrowing fee on the shares to make delivery or unwinding the position by purchasing the shares in the market trader. A might next enter into a trade that gives the appearance of satisfying the broker dealer's closeout requirement, but in reality allows trader a to maintain its short position without ever delivering on the short sale. Most often this is done through the use of a buy right trade, but may also be done as a married put and may incorporate the use of short-term flex options.

Now i did explain this and draw it out at some point in one of my previous videos but effectively. This is how the market makers transfer those failed to deliver positions just to another market maker and it resets the clock to do that trader a may enter into a buy right transaction considering of selling deep in the money calls and buying shares of a stock against The cool sale by doing so trader appears to have purchased the shares to meet the broker, dealer's close-out obligation. However, obviously trader a has no intention of delivering most shares and is instead, a re-establishing or just extending a failed position so effectively trader a buys. The shares from trader b and trader a also sells deep in the money, calls to trader b and then trader b exercises those deep in the money, call options and trader a delivers.

Those shares back to trader b that it brought from them previously so effectively trader a bought some shares and then gave them to trader b to satisfy the call options, trader b, sold some shares and then got them back as they exercise the call options effectively netting Out both market makers transactions, what this does is effectively just resets the filter, delivered timeline and removes it from the threshold securities list and means the trader a doesn't need to actually go into the market and buy shares to cover their failed to deliver position. However, it is important to note that trader a never, obviously satisfied that felt the deliver position and effectively still has all of those failed to delivers. It also can't keep doing this forever, because obviously trader b takes on some risk by selling their shares and then getting the call options and exercising the call options. Therefore, trader a has to pay quite a large premium or like a transaction fee to trader b for taking on that risk.

Therefore, trader a is just effectively prolonging the inevitable, and that is the inevitable of having to buy actual shares in the actual market to cover their failed deliver position. However, one important thing to note is there is some relationship between the failed to delivers and the amc price you can see here. There was quite a lot of failure, delivers in a short time period and the amc price stayed suppressed. We then saw the number of filter delivers trail off substantially and we actually saw a reduction in the amc price between the 19th of may and the 24th of may that all then culminated in one giant day of failed delivers as the amc price spiked upwards.

Again here in june, we've got a very large amount of failed delivers with the amc price staying suppressed. We then saw the number of felted delivers, drop up massively and amc has been declining ever since. It wouldn't surprise me if this is going to lead to a giant culminating day of millions and millions and millions of failed delivers, while the amc price spikes again. Similarly, to what we saw back at the start of january, when we had 27 million fails to deliver in the same day that culminating day could be caused by a certain event, such as the reverse, repos being due any liquidity crunch increases margin, requirements via an scc's Risk management algorithm dtcc can now liquidate shorts in a day, so, whether it's the delta variant that induces the risk which increases the margin, capital requirement or amc's rise in capital requirements due to share price increase or just a flat out burst of the largest inflationary bubble Of all time, all indicators point to a high likelihood in a breakout gain of amc share price.

Supposedly amc is therefore the all-time greatest hedge against the crashing market. Basically we're just waiting for that. One market-wide event that happens that causes those shorts to be liquidated, either their long positions get stressed and they have to be sold off or their short positions again get stressed and have to be covered. This one market event is then going to cause amc to skyrocket, because if one hedge fund topples all of them are going to topple.

Now you might say yeah, but tom amc has been falling all day. Well, don't forget, the hedge funds borrowed 5.5 million shares this morning to lower the price to simulate a sell-off or market plunge. If we look at iborodesk on friday afternoon, they had 5.4 million shares to borrow that could be shorted all of those were borrowed monday morning and used to hammer down the price of amc today. I also wanted to quickly go back over hr 4618.

The short sale, transparency and market fairness act believe it or not. There are actually 22 different representatives that voted nay to approving hr 461a. I wonder why every single one of the politicians who voted against the short sale, transparency and market fairness act has received campaign contributions from some combination of hedge funds, big banks, family offices, another type of fund or other investment groups that benefits from the current market structure. Blackstone group has their name over all of these politicians.

Bk2 holdings is a weird shell, dark money, company linked to a billionaire hedge fund manager and has had their hand in a lot of these pools. Ubs and bank of america are also other very common names on these lists. Wells, fargo to a slightly lesser extent as well, and believe it or not, the dtcc and other clearing houses are also on some of these lists. Yes, the dtcc are also donating to those politicians remember this is only the reps on the financial services committee who voted against this bill.

The bill will, at some point, go to the house floor for a full vote. Call email tweet at do everything you can to contact your reps that may be on this list and request an answer as to why they voted against the bill. That goes against the best interests of their constituents. Demand answers.

Bird bear actually managed to put together a list of all institutions that donated to those politicians parties, if i just slowly scroll through this list, you can see which institutions are the major players in sponsoring these politicians and their parties. I'll also put the link in the description of this video, so you can have a look for yourselves, believe it or not. There are also three politicians that had received donations from none other than ken griffin and steve cohen, as well guys be sure to. Let me know down in the comments below what you think of the july fell to deliver data, and also about the politicians that were opposing hr 461a and guys.

If you haven't already i'd, really consider joining a patreon and the private discord and becoming part of the team that way, you can get urgent updates and news, and due diligence on amc before i even make a video linked in the description below 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.