Welcome back to the channel everyone today, i want to talk about how the dtcc are actually hiding zombie stocks. There was some speculation that the price was shooting up, because these stocks were being entirely delisted from the otc and therefore shorts were being forced to cover, but in reality, they're just being moved to a new exchange and being completely hidden from the public eye. So guys. I want to explain all of that and what this new ruling coming out on september 28th actually does so stay tuned and let's make some money - and i also wanted to quickly tell you a little bit more about the private discord.

It's a really active group chat with over 40 members in at the moment. We predominantly talk about amc, but also talk about other new up-and-coming stocks and cryptocurrencies. It's also the best place to get in contact with me if you've got any questions, as i'm active there, pretty much 24 hours a day unless i'm sleeping and obviously it's linked down in the description below and also while you're down there be sure to check out The other links, so you can get some free stocks with moomoo or with free trade and pick yourself up some cool merch as well, and now i want to dive straight in with the key information, so big changes coming that could affect otc zombie stocks effective september 28Th, many otc stocks will be moved to a private broker-dealer network called the expert market and you, the retail investor and general public, will not have access to prices, data or trading within this private market. Hm hermes says i'm trying to get as many eyes on this.

As possible - and i haven't had much luck so far - i keep seeing posts that make the front page that are making big claims about short positions and september 28th, including claims that shorts must cover or close their position by that date and that's effectively potentially what's causing Those massive increases in these zombie stocks, however, those posts have been backed by zero, actual evidence, and it's not the case which hm hermes dispels here, and he says after looking into the matter, i believe i've discovered something nefarious, or at least something that is certainly not In the best interest of retail or in market transparency, he also give a too long didn't read, and it says courtesy of otc markets group themselves. Otc markets group currently operates the expert market as a distinct market tier for a small number of companies. However, on september 28th, this market tier will expand to include a broader range of securities following the upcoming changes to rule 15c 2-11 companies that do not make current information publicly available under the rule will shift to the expert market. He said it is correct that additional reporting requirements are effective on september 28th.

Stocks that failed to meet the new reporting requirements will be delisted from the otc market, but it's going to be moved to what is called the export market. There is no mention of forcing positions to close in any of the reading that i've done. Therefore, shorts, don't have to close their positions and, at the same time, longs don't have to sell off their stocks. The stock isn't being completely delisted and dissolved, and the stock won't disappear.

It's just being moved to a different exchange, similar to how stocks move from the nysc to the otc exchange. It's now being moved from the otc to the expert market in response to the new reporting requirements for otc stocks. Otc markets group has processed exemptions to the new rules for securities traded on part of its alternative trading system, ats otc link. They have proposed that their expert market, in which access to data and quotes will be restricted to broker-dealers and professional or sophisticated investors, only be exempt from the reporting requirements.

The pretense being the restricting retail from accessing such opaque securities will protect the general public from the risk of fraud and manipulation effectively achieving the investor protection that the new reporting requirements intend. Now i guess in some instances this may actually be useful companies that trade on the otc exchange are typically very small and not much is known about them, and if they don't make available public data, if they don't publish any of their financials, then you could end Up falling into the trap and investing in a fraudulent company, therefore, their idea is to prevent investors from potentially investing in a fraudulent company. They'll just move these stocks from the otc market, where data is still accessible to an expert market where data isn't accessible. While that could effectively prevent some people from investing in fraudulent companies, it also goes against the thought process of market transparency and making data more available, especially when you remember that most retail investors tend not to invest in otc stocks because they're so difficult to invest in You can't find them on many trading platforms or trading apps like robinhood weibull and many others, and therefore, typically, the only way to invest in these stocks is by speaking or calling your actual broker.

Considering that at the moment, most people already don't invest in these otc stocks. If it's not on their trading, app people tend not to invest in it. Therefore, i don't really think they're going to be saving too many retail investors from investing in fraudulent companies by removing the access to this data. Interestingly, the sec seems on board with this idea.

This expert market, which is an ats aka dark pool, has been operating since april 2019 and will become the new home for many companies that do not meet the new reporting requirements for otc stocks, perhaps including our reanimated zombie stocks, to get a handle on the situation. I read through some of the following sources: the original sources from the post, i'm correcting a lengthy but informative, read the sec filing describing new requirements and proposed exemptions, the og source and the otc markets. Explaining of the ats the too long didn't read from above, very insightful, obviously, as always i'll leave the link to this post and every other post that i talk about in the description of this video in case, you want to read further and read into these additional Pieces of information or additional sources of information as well, first off, there's no mention in anything. I've read about short positions having to close before stocks are delisted from the otc market as they're not being fully delisted and dissolved they're just moving markets.

The new reporting requirements, roughly speaking, will require stocks trading on the otc to maintain recent financial statements. If they are continuing to trade on the otc market, otherwise they'll be delisted from the otc market and moved and now, obviously, because blockbuster doesn't prepare those financial statements because they're not solvent. Therefore, they're going to be de-listed and moved to this expert market because they don't meet the new otc reporting requirements. So the security still exists after being delisted as it's only being moved, but it becomes even more illiquid than it was already on the otc exchange and data and quotes for security become more difficult to access.

The expert market, as described by otc markets group, is a distinct market tier in which otc link, llc's broker dealer subscribers each subscriber and collectively the subscribers can, amongst other things, find price transparency in certain securities that may not be eligible or sustainable for retail investors. Currently, the distribution of quotations for securities that are published or submitted on the expert market is limited to broker-dealers and otc link ats subscribers, and it does not make such quotations available to the general public securities that are traded on the expert market is those that don't Publish publicly available information - maybe it's a shell company or maybe it's a security. That's currently going through chapter 11 bankruptcy and therefore you're telling me that any stock currently traded on the otc market, which belongs to a company with outdated financial statements, including shell companies or securities issued from a chapter 11 bankruptcy, are going to be taken off the otc Market and moved to a different, dark pool or a different exchange that is designed specifically to exclude retail investors and hide quotes and data from the general public. The potential for even more malarkey seems clear to me.

The sec is saying you have to be compliant with the otc reporting requirements, because the otc market is having non-compliance issues but the consequences of continued non-compliance. Is you get moved to a private expert market where the reporting requirements don't apply and the data isn't publicly available? Doesn't really seem like much of a punishment to me. It seems that if i was hiding something through non-compliance, i'd just continue to do so and end up in a private exchange or a private ats, where my non-compliance isn't an issue and i'm hidden from the public view as well. So how is the distribution of quotes and data handled on the expert market? Well, quotations published or submitted on the expert market are clearly identified in a data feed to which otc markets group controls, which subscribers or who the subscribers are and market data distributors and which users have access and the sec's thoughts on this expert market are.

The commission believes that, under certain conditions and circumstances, it could be beneficial to establish an expert market that would enhance liquidity for sophisticated or professional investors in grey market securities, as well as for small companies seeking growth opportunities that might prefer to be quoted in a market. Limited to such persons - although i did think this line here, was very very interesting to enhance liquidity for sophisticated or professional investors in gray market securities. So you're saying it basically makes it easier for professional investors and professional institutions to trade sketchy stocks that are potentially fraudulent. Aka makes it easier for professional institutions and professional investors to continue committing fraud and illegal naked short selling.

Great and really this development. Alongside the cftc's decision to suspend reporting requirements for swap, dealers paints a picture of the sec and the cftc are actively suppressing retail and the general public's ability to access information, which i thought was the exact opposite of what market transparency is supposed to be, and the Exact opposite of what gary gensler is supposedly pushing for. More of all in all, it seems like we weren't supposed to find out this data about thousands of stocks on the otc markets being pumped recently. Obviously, these stocks are being pumped to create additional liquidity.

They can be borrowed against to effectively try and save these institutions from the incoming liquidations that they face. It seems like because we've now found out this data they're just going to try and push it somewhere else and limit the accessibility of that data, so the general public and retail investors can't see it anymore. I personally would like to see this decision, and this ruling being overturned and i'd like to see the continued access to this otc market data and also for the sec to actually do something about it and to investigate it as well. I also wanted to retouch on the shang qi box office debut.

Obviously, the estimates were that it was expected to gross around 70.8 million dollars over the three day period, which would nearly triple the previous record set 14 years ago by rob zombies halloween with 30.5 million dollars. We've now got the actual results coming out and shang chi. Just earned 127 million dollars in the film's three-day worldwide box office opening weekend. Therefore, not only did it smash the previous record of 30 million, and not only did it also smash estimates of 70 million, it nearly doubled those estimates with 127 million dollars and that's what about five times the previous record.

That is absolutely incredible. Don't forget, this previous record was also set pre-pandemic, and that just goes to show that amc is absolutely not a dead cat and is even bigger than the experts estimated. I'm also now starting to think that, even if amc wasn't a short squeeze play and it was a fundamental play, the amc is still massively massively undervalued even at 44 dollars. A share 44 a share gives a very, very successful theater company, potentially the most successful theater company in the world, a 22 billion dollar valuation.

This is a company that can command exclusivity rights over pretty much any motion picture film. They want to show, and yet they're only valued at 22 billion dollars, and yet you've got netflix that can't demand any exclusivity whatsoever only for their own film creations and they have a market cap of 261 billion dollars. Guys be sure to. Let me know down in the comments below what you think.

Amc's true share price and true market cap should be even on a fundamental basis and also, let me know what you think about the dtcc and the sec now trying to hide the zombie stocks and be sure to check out those links down in the description below To get some free shares, with free trade or with moomoo, to check out the private discord and to pick yourself up some cool merch as well, 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.