Phase 6. Margin requirements will cause the amg squeeze as tons of hedge. Funds will will be forced to post collateral for trades. They've already entered and tried to stay tuned.

And let's make some money and now. I'm going to dive straight in with the key information. So cat strike tweeted. Saying phase.

Six. This is a death sentence to those who have over 8 billion in non clear derivatives trades and they will be susceptible to these margin requirements coming september 1st. She said look at the difference from phase one to phase six and she thinks this could cause a domino effect phase. One that came in in february 2017.

Only required funds that had 3 trillion in unclear derivatives liabilities to post this upfront collateral in 2019 and 2021 this requirement was reduced to 075. Trillion and 50 billion after that but considering amc has a market cap of under 10 billion dollars. That means. There's only reasonably around 20 billion or 30 billion dollars in a legal synthetic shares whether it's a legal synthetic shares uncleared felt delivers total return swaps or wherever.

It is it may be it's only reasonably around 20 or even 30 billion dollars therefore if there's only a minimum requirement of 50 billion dollars to post this up frank collateral it won't catch any of the funds illegally shorting amc or any of the other meme stocks but now that it's being reduced to only eight billion dollars. It means. It's likely to catch a number of different funds that do have unclear derivative liabilities that total for all stocks eight billion dollars randall cornet tweeted saying bill was caught with his pants down pre phase six and look what happened. He said.

With over 775 new firms now being introduced to being in scope of phase six how many of those firms do you think are doing the same thing. He said. How are they going to meet aa and a threshold margin requirements by posting this upfront collateral considering not even bill huang could meet those requirements this extract from the financial times. Says broad global rules demanding that asset managers set aside more cash to cover their swaps deals are defined by the basil committee on banking supervision and international organization of securities commissions.

Now in the us that job is split among a host of different regulators but federal banking regulators have already introduce margin requirements for large banks trading with each other but obviously as cat striker tweeted in 2019 and 2021 this threshold was pushed down and now it's being pushed down. Even further. And that decision meant. A group like okay goss.

Which held derivative positions worth more than 50 billion. Dollars according to people familiar with the trades was not required by any us. Regulators to post margin. When it first initiated a trade now bill huang had around 30 billion dollars of equity.

But obviously that equity was leveraged into 100 or 200 billion dollars worth of these total return swaps. But when entering these total return swaps bill huang. Didn't post any upfront collateral. And then all of a sudden when these requirements notch down to only 50 billion dollars.

That's when bill huang was core when these margin requirements reduced to encapsulate firms with 50 billion dollars in uncleared trades and more that's when bill huang was caught as he had to post all of this up front collateral. But didn't have the cash now this is again being reduced even further to only 8 billion dollars. And therefore any of these hedge funds that are currently swimming naked. That are currently stuck in their positions will be caught and will be liquidated these funds will shortly be required to post millions and millions of dollars in cash collateral up front for these trades.

They are newly entering and trades. They've previously entered. But because these hedge funds are stuck. They won't have the cash to post this collateral and guys.

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Flow and they do not sell your order flow to other market makers like citadel or to clearing houses. Like apex clearing in fact mumu cleared their trades on their own through their own clearing. Broker food to incorporated. Which does also not benefit from your order flow their forming was brilliant for buying those amc and gamestop shares you may say tom what kind of funds or what kind of specific trades are encapsulated within phase six.

We know it encapsulates total return swaps because that's what bill huang was holding. But what else will this screenshot here says that it encapsulates physically settled. Fx forwards and fx swaps principal payments on currency swaps covered bond transactions certain group transactions equity options aka call input options and certain physically settled commodity forwards and options so not only does this encapsulate swaps or total return swaps. But it also encapsulates equity options.

Aka call and put options aka. Married and divorced puts so we know these security based swaps and the security based swap agreements were used by arcados to raise and oppress the price of such securities now it was done for the purpose of inducing. The purchase and sale of such securities by others so that's basically saying these security based swaps were used to depress the price of certain securities or certain stocks to induce others to buy more or to sell such securities. Aka.

The price of such stocks were pushed down to cause people to panic sell. And it also wouldn't surprise. Me if many of these other funds have also been using the exact same security based swaps security based swap agreements call input options and married and divorced puts to do the exact same thing in other stocks like amc. But now we've got bill wang's right hand men now entering cooperation agreements with the government to obviously rat out other hedge fund managers and these new capital requirements will expose other hedge funds that haven't posted up from collateral that have billions in collateral requirements.

That they don't have the cash to me now fortunately these new margin requirements are implemented and overseen as a result of the new basel legislation and that's overseen by a host of different regulators in the us. And those regulators are going to be the cftc. The dtcc finra and many others. But fortunately not the sec.

I say fortunately not the sec because it turns out that gary gensler. Also doesn't have a properly registered llc company. It says in 2005. Gary ganza created a family investment company annabel lee llc.

Which holds somewhere between 34 million dollars and 101 million dollars of his enormous personal fortune now the state of maryland requires those businesses to be registered to do business. But it turns out annabel lee llc hasn't been registered since 2006 has gensler facts tweeted. He said. That means annabel lee hello c.

Technically doesn't exist and has no right to do business in the state of maryland. They said by failing to maintain the registration of his family investment company. Gary gensler. Has apparently been breaking the law for over 15 years they may say tom gary gensler had to resign from his company or from managing this company as a result of being promoted to the post of chair of the sec and while gary gensler.

Did resign as the managing member of the unregistered and illegally operating annabel lee llc. He continues to have a financial interest in that entity therefore. This company is still managing all of his money. I think it's being managed by vanguard.

But is still managing his money and he continues to have a financial interest. But it's still an unregistered company technically operating illegally therefore it wouldn't surprise me if this company is also acting illegally as well as just not being registered and could potentially be a legally shorting different securities as well now this is just a hypothesis. I don't have any proof that gary gensler is naked shorting amc. But it is very very possible if he's operating in a legally acting company fortunately in a huge win for investors and a huge loss for citadel securities.

The courts have sided with the sec against citadel securities to allow the iex anti predator order type last year said that i would try to sue the sec to not allow this iex order type. But it's now going ahead. While this doesn't necessarily impact the naked shorting of amc it shows the courts aren't afraid to go against citadel securities. Dennis keller also seems really confident as he said hey platinum sparks did you see that citadel securities.

Ken griffin and the rest of the high frequency trading predators were handed a crushing defeat by dc court in their boga suit against the sec for allowing iex to protect retail orders dennis keller. The president of better markets is clearly saying that ken griffin and citadel securities. Just suffered a crushing defeat. We know that latency arbitrage does exist.

And we know that citadel makes millions potentially billions from exploiting. It and now they can no longer exploit it that's millions and billions. They will be losing every single year now finally i did see an article headline that i know unfortunately isn't true. But i do wish it was true and i can't wait to the day that it comes true this article says has the citadel founder.

Ken griffin been arrested for racketeering his charges explained it says according to rumors that i was founder ken griffin has been detained on suspicion of fraud. He's a wealthy businessman with a successful career now. While i know this article isn't true as i couldn't find any genuine supporting research or any other genuine supporting articles. I can't wait till the day that it actually comes true.

But guys be sure to let me know what you think down in the comments. Below and as always guys be sure to ding that notification bell. Because that way you'll be alerted when i upload a new video cheers.