Welcome back to the channel everyone today i want to talk about the citadel employee, that's just exposed to the dell securities and how close they are to bankruptcy now, because that is a very clickbait title. I also wanted to go through gary gensler, the chairman of the sec's, testimony on gamification and user experience, payment for order flow equity, market structure, short selling and market transparency, social media market, plumbing clearance and settlement and finally system-wide risks. 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 2 900 of you that 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 i'm about to lose my job, and so we all this person does not recommend citadel as a place to work. He does not approve of the ceo and he does not think that citadel has a very good business outlook. He says pros this company is on the verge of collapse, so i can't say many positive things he says cons. I didn't know the world of finance and trading could be this corrupt.

It's understood that citadel has found ways to make more capital betting against progress and growth than they would have by strategically investing in various lucrative securities they've realized. If they manipulate the market, they can make sick amounts of money, which is tantamount to larceny and get away with it, because they're technically operating within the rules - and he said, advice to management. You compromised an entire group of people and now they're coming back for everything. You have now if we have a look at glassdoor and their policies, someone's asked, does glassdoor verify employees they've said at glassdoor.

We aim to verify as much of our data as possible, considering the reality of our digital age. However, we are unable to fully confirm our users identities the truthfulness of their contributions or their employment status. Therefore, that review of citadel might not actually be legit. In fact, it's probably not legit, but hopefully i gave you all a good laugh now, let's get into the meat and potatoes of today's video.

So to start with gary gensler said we expect to publish a staff report assessing the market events over the summer. While i cannot comment on ongoing examination and enforcement matters, the sec staff are vigorously reviewing these events for any violations. I've also directed staff to consider whether expanded enforcement mechanisms are necessary. There derek enzo, firstly, talks about the gamification and user experience of the market.

There isn't a settled definition of gamification but broadly refers to the use of game-like features, such as points rewards, leaderboards bonuses and competitions to increase consumer engagement, he's deciding whether this is a good thing or a bad thing for the market. He mostly pointed out that, following the wrong prompt on a trading app, however, could have a substantial effect on a savers financial position. A big loss could have an immediate impact on the app user's ability to afford their rent or pay other important bills. A small loss.

Now could compound into a significant loss at retirement. He said that in this context, i've asked staff to prepare a request for public input for consideration on these issues. We need to ensure investors using apps with these types of features continue to be appropriately protected and consider how all of the rules apply in these situations. In addition, many of our regulations were largely written before these recent technologies and communication practices became prevalent.

I think we need to evaluate our rules and we may find that we need to freshen up our rule set a bit. If we don't address this now, the investing public may shoulder a burden later. He then went into payments for order flow and noted that higher volumes of trades generate more payments for order flow. This brings to mind a number of questions do broker.

Dealers have inherent conflicts of interest. If so, are customers getting best execution in the context of that conflict, which we know that we're not because market makers like citadel have paid tons and tons and tons of fines over the years for not giving customers best execution price? He also noted that, finally, it's interesting to know that neither the united kingdom nor canada permits broker-dealers to route retail orders to off-exchange market makers in return for payments. Payment for order flow is actually banned in the uk and canada. This means those market makers can't benefit from those payments for order flow, but trading platforms in the uk still are successful and still work just as well.

More importantly, he then went through equity market structure. January's events bring new light to equity market structure. Today, our markets essentially have three different segments, while the public generally thinks of these markets as public exchanges like the nasdaq and the new york stock exchange. Those big public markets had about 53 of the volume in january, according to public data.

So, what's the other 47 about nine percent of january's volume was executed at alternative trading systems or dark pools? These alternative trading systems, commonly known as dark pools, emerged following the 1998 regulation ats rules, taking advantage of the then new technologies or advancement in the internet and communication technologies that leaves about 38, the majority of which was executed by off-exchange wholesalers. A group of firms that have been taking a growing share of trading volume that group of firms is mostly made of citadel securities virtue and a few others. The high concentration of retail orders, routed to a small number of wholesalers, raises a number of questions about market structure. In essence, does this segmentation and related sector concentration best promote fair, orderly and efficient markets, which we know it definitely doesn't? History and economics tells us that when markets are concentrated, those firms with the greatest market shares tend to have the ability to profit from that concentration.

Market concentration can also lead to fragility, deter healthy competition and limit innovation. I've asked staff to look closely at these issues to determine which policy approaches may be merited short selling and market transparency at the centre of january's market events was significant short selling of a number of the meme stocks, while finra and the exchanges currently publish or make Available certain short sale data congress directed the sec under the dodd-frank act to publish rules on monthly aggregate short sale disclosures. In addition, dodd-frank provided authority to the sec to increase transparency in the stock loan market. I've directed sec staff to prepare recommendations for the commission's consideration on these issues.

He then went on to talk about archagos and how they were using total return swaps and how, under the dodd-frank act, congress gave the sec rulemaking authority to extend beneficial ownership, reporting requirements to total return, swaps and other security-based swaps. Very interestingly, he then went on to talk about social media. New communications channels have long brought opportunities and challenges for markets. Today's social media tools have far greater reach scale and anonymity than previous technologies.

This raises a potential issue: the possibility that wrongdoers will attempt to use these powerful forms to hype, certain stocks or manipulate markets to be clear, i'm not concerned about regular investors exercising their free speech online, i'm more concerned about bad actors, potentially taking advantage of influential platforms. Furthermore, it's no longer just retail investors, or even humans, who are following these online conversations for institutional investors and their algorithms development in machine learning. Data analytics and natural language processing have allowed sophisticated investors to monitor various forms of public communication, to see relationships between words and prices with that comes the risk that nefarious actors may try to send signals to manipulate the market. This is an area for which we will continue to deepen our understanding, resources and capabilities.

He then also went on to talk about market plumbing clearance and settlement and how t plus two really needs to be shortened to t minus zero or t minus evening, and he said i believe, shortening the standard settlement cycle could reduce costs and risks in our markets. I've directed the sec staff to put together a draft proposal for the commission's review on this topic. He then finally went on to talk about system-wide risks. Speaking about how robin hood didn't have enough cash to meet their obligations, how archagos caused a small market sell-off and how, with the issue of concentration, that could very much cause a very real sell-off.

I do think it is good that gary gensler is at least addressing a lot of problems in the market, such as gamification payment for order flow equity, market structure, short selling, social media abuse, market plumbing clearance and settlement and system-wide risks. However, so far it's only things he's said: he's going to do and things he's said: reports are going to be prepared upon and how rules have been proposed, but obviously they haven't yet been implemented. I do think we need to give the sec some time to sort it out, because there are a lot of problems in the market that need to be addressed, but i do hope these problems are resolved sooner rather than later. I think the best thing that we can do is to continue providing the sec with evidence of this market manipulation and this dark wall abuse and finally, ortex is also showing over 100 million shares now on loan with a utilization of 91 they've got very, very close To having pretty much the entire outstanding shares on loan as there's 19.59 of the float currently on loan, that shows there really isn't that many legal shares left over the shore.

I expect that utilization to continue creeping upwards next week, getting closer and closer to 100 utilized when we get to 100 utilized. The shorts won't be able to short any more legal shares, and therefore amc should start rising. Guys be sure to. Let me know down in the comments below what you think about gary gensler's testimony.

Do you think it's good? I just hope we start seeing some action taken soon and if you want to buy some shares in amc, but you haven't even yet signed up for a trading platform, be sure to sign up with fidelity because they don't sell your order flow to market makers. Like citadel, who put it through the dark pool, basically don't use weevil or robinhood to buy amc. Although saying that weevil is an excellent beginner investment platform, they've got great charting they've got news, they've got company fundamentals and figures. They've got option order.

Flow they've got pretty much everything, so if you do want to buy other shares, like apple amazon, tesla or netflix, be sure to sign up to weeble, using my link in the description below to get some free shares and if you're from the uk be sure to Sign up for free trade again using the link in the description below to get some free shares 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.