Welcome back to the channel everyone by now you've probably heard of the new fud, that's currently being spread around, which is to stop buying amc shares. Why is this fud being spread around and what are the hedges trying to accomplish? I personally think they're trying to cover up and hide some new proposed regulations, so stay tuned and let's make some money, and i want to dive straight in with the key information. So, firstly, i want to start by addressing the fudge and why i think it is fud and why i think we should not stop buying amc shares so to stop the squeeze. They took away the buy button in january, which did actually work by the way.

If you didn't remember, gamestop was obviously running and it was out of control, but the brokers took away the buy button and crushed the attempts of the squeeze and now they're trying to convince you to do that yourself and stop buying amc, stock and gamestop stock as Well and they're, saying by stopping buying the stock, it will help. It seems to me somebody isn't allowed to take away the buy button this time and they're a bit scared. But what about in a bit more detail? Why do the hedges want us to stop buying amg stock and not continue to buy and continue to hold well, firstly, the hedges manipulation tactics is based on scaring away the paper hands. So to start, if the hedges sell or short 500 000 shares, it'll entice.

Some paper hands to also sell their shares as well. To add to that selling pressure that way, the hedges can drop the stock more than a bargain for and they can buy back those shares that they sold or shorted at a lower price and not push the price up quite as high. But while the volume is low, it proves that we are winning, because, obviously, when the volume is low, it's basically just hedges selling shares to each other. Us apes aren't selling our shares and we're steadily buying more and therefore with the low volume it just makes it more difficult for them to cover their shorts.

When the price starts to move up on low volume, because the hedges don't have any more money to continue. Shorting, that's when they're really in trouble, because obviously, if amc goes past, the 50 55 mark, that's where all of the volume is going to return and send amc to new highs and obviously the more we buy and the more fomo buying there is. It will push the amc price even higher, and effectively enact a gamma squeeze before enacting that short squeeze, and therefore this is why stopping buying amc shares is fud, because stopping buying isn't going to help. The best thing we can do is to continue to buy and continue to hold, but so why the hedgie's, trying to spread all of this fud they're, trying to spread it to the top of reddit forms they're trying to spread it all over youtube.

They're trying to spread it all over discord channels and over facebook pages and basically everywhere. I personally think they're trying to spread this fud to cover up some new proposed regulations. Mumu are currently running their biggest ever promotion, offering five free stocks valued up to 3 500. Each just for signing up with moomoo and making your first deposit, so i wanted to break down how you can get each and every single one of these stocks.

When you open your account with moomoo, you get your first free stock value up to 3 500. When you then deposit any amount, even if it's only one singular dollar, you get your second free stock, also valued up to three thousand five hundred dollars, and if you can deposit a total of two thousand dollars, then you get the final three free stocks remaining, also Valued up to three thousand five hundred dollars each so that's potentially up to seventeen thousand five hundred dollars just for signing up with moomoo and making your first deposit using the link in the description below so there's. Two main proposed regulations that i want to cover and talk about today. Firstly, we've got the increased reporting of securities loans or lended shares, but also the electronic record-keeping requirements for broker-dealers security-based, swap dealers and major security-based swap participants.

So obviously we know the securities lending market is large, but also very opaque. The value of securities on loan in the united states as of september 30th 2020, was estimated at almost 1.5 trillion dollars and also that's going to be before the hedges doubled down on their amc in gamestop shorts and also before many other hedges also joined. That shorting and also started shorting many other stocks. So potentially this could be even at two trillion or two and a half trillion, or even three trillion by now and yet, despite its size, the securities lending market in the united states has a general lack of information available to its market participants, the public and even The regulators, so i personally think that the sec isn't even aware of some of the malpractice that's actually going on.

I personally don't even think the sec are even aware of the zombie stocks like blockbuster that are sitting on those otc markets. The sec has prepared a handy fact sheet on the securities lending transparency updates. The commission is proposing exchange act, rule 10c, 1 to increase transparency and efficiency in the opaque securities lending market by requiring any person that loans, a security on behalf of itself or another person. To report certain material terms of those loans and regulated information, but so why does this matter well, there's limited information available to market participants, the public and, most importantly, regulators like the sec about securities lending in the united states.

Data on the market is incomplete, unavailable to the general public and not centralized these gaps, create inefficiencies in the securities lending market and make it difficult for borrowers and lenders to know whether the terms of their loans are consistent with market conditions. Basically, even some lenders and borrowers don't even know if this share lending is legal, so what's actually required proposed rule 10c would require lenders of securities to provide certain terms of their securities lending transactions to an rnsa. Those terms to be provided include the legal name of the issuer of the securities to be borrowed, the ticker symbol of those securities, the time and date of the loan, and when it actually happened, the name of the platform or venue it actually happened on. If one is used or whether it's done otc or in the dark pool, but also the amount of securities loans, the actual rates, fees, charges and rebates for the loan as applicable, the type of collateral provided for the loan and the percentage of the collateral provided to The value of the loan securities, the termination date of the loan, if applicable, and also the borrower type now i think these two are really really important here.

The rates that have been charged and the actual fees that have been charged that have truly been charged as well, but also the type of collateral provided for that loan, whether they're providing decent collateral or not, or legal and regulated collateral or not. But, most importantly, there's also some additional terms. They also have to say whether the lender is a broker-dealer and whether the securities loan to its customers is loaned from the broker's dealer inventory and whether the loan will be used to close out or fail to deliver. Pursuant to rule 204 of regulation show or whether the loan is being used to close out a failed deliver outside of regulation show.

So this is actually something interesting that i've not really heard of before. I thought all filter delivers, fell under regulation show, but it turns out you can even get some fails, that fall outside of regulation sho as well, but i do think it's important. They have to report whether the shares being lent actually exist and whether they're being used to close out a fail. Now you might say, but what happens if they file a false report, they don't really say how many shares they're, borrowing or lending they don't really say.

If it's to cover a fail or not, and they basically lie on the report, for example, people might paper hand and sell amc because they see in the official report the short has been covered, but afterwards there's a fine of a few hundred thousand dollars. The profit that has been made to cover up that lie, but i think the sec has actually preemptively expected that and already gone one step further by proposing this new rule or regulation for electronic record keeping requirements. As discussed in greater detail in the sections below the amendments to rule 17, a-4 would provide an audit trail alternative to the current requirement that electronic records be preserved exclusively in a non-rewritable non-erasable format. The audit trail alternative would require the firm's preserve electronic records.

In a matter that permits the recreation of an original record if it's altered, overwritten or erased and most importantly, rule 18a-6 currently does not have a requirement to preserve electronic records in a matter that permits the recreation of an original record if it's altered, overwritten or erased. So currently, broker-dealers and lenders and borrowers can actually basically fake these records or update them or change them at a later date. So they're reporting, inconsistent information and false information and there's currently nothing that prevents them from doing that, which is why the sec are introducing this new proposed regulation to basically make sure they can't change, alter, overwrite or erase some previous reports now. I think this is really really important, because, obviously it's all well and good saying that broker dealers have to provide additional information around securities lending like the rates and fees, the type of collateral provided, but also, more importantly, whether it's to close our fail or whether the Shares actually exist, but obviously those broker-dealers can just lie on those reports.

They could obviously lie and falsify the records then submit them to the sec. Maybe the sec isn't going to read every single report individually and verify its authenticity they're just going to place it to one side, but if they ever get caught in the future, then that broker dealer could just go in and change all those records and make them Look like they were actually correct, but now the sec is implementing a way so that these broker dealers can't go back into those old records and correct them and make them look appropriate when originally they were submitted and they were false and incorrect. So i wanted to quickly go through and remind you how counterfeit shares can be created through the stock borrow program and then also talk about why this new sec rule is going to be great to make sure these records can't be falsified. So there's a loophole in the stock borrow program that allows for the creation of counterfeit shares.

For the sake of example, let's assume that the parties in a hypothetical example, a hedge fund, a broker b investor b and broker b, and also a market maker and obviously the dtc and the nscc, so broker a transmits hedge fund, a's short sale, order to market Maker, a in xyz stock, the market maker confirms immediately to broker a that. The trade is complete without first locating the shares and therefore hedge fund, a is naked shorting the stock, but under regulation show. That is legal because the market maker can create shares or lend them without. First, locating investor b buys through broker b, the 2 000 shares offered by the market maker at ten dollars, even though the market maker hasn't located those shares to borrow or to lend, if at t, plus, two, the market maker still hasn't found those shares or located.

Those shares he's in a fail to deliver situation, but obviously because the nscc guarantees all transactions, then the dtc and the nscc identify broker c, who has a net long position of 2 000 shares and who is willing to lend those shares to the nfcc. And therefore, it's settlement, t plus two hedge fund, a is shorting two thousand shares investor b, has bought two thousand shares, even though the market maker failed to locate those shares and borrow those shares and broker c is obviously credited because they still own. Those 2 000 shares that the nscc borrowed, and this is the critical point at which the counterfeit shares have been created. The nscc shows customers have broke a c, they still hold the 2 000 shares, but also investor b is also credited as owning the same 2.

000 shares hey presto, there's now: 2 000 new counterfeit shares outstanding under regulation show the market maker has until t plus 6 to locate stock and close out the 2 000 shares of xyz stock that it borrowed through the stock borrow program, but obviously wall street has A bag of tricks to get around that requirement, one is simply to ignore it and never report it or falsify those records. Another is to roll the position to another broker dealer and often that information gets lost in translation, because the records aren't that good and there's not much that's actually being reported and then you've also got. Those divorce puts that i've spoken about many times on the channel. Where effectively a hedge fund or an institution just kicks the can and rolls those fails to another hedge fund or institution, and obviously because the securities lending market is so opaque, those shares aren't being tracked.

The sec isn't tracking these hedge funds and institutions. Just passing the shares or the shorts or the fails back and forth to each other and never actually closing out the fails. But obviously, with these new regulations, it will give the sec a way to actually track the shares that are being lent out and where they're going and whether those fails are actually ever being satisfied. And it also gives the sec a way to make sure those records that are being submitted, aren't falsified and then changed at a later day.

Guys, if you haven't already i'd, really go and submit some comments on these new proposed regulations and say just how interested we are and how much we support these new regulations. You can just search the sec proposed rules, and it will come right up guys be sure to. Let me know down in the comments as well what you think about these proposed regulations and whether you think they'll be good and actually have a positive impact on amc and, if you haven't already be sure to sign up to moomoo, because you can currently get five Free stocks worth up to three thousand five hundred dollars each and as always guys, if you enjoyed this video, be sure to check out some of my others. Alternatively, subscribe to the channel and hitting that notification bell, because that way, you'll be alerted.

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