Today I Want to talk about how the SEC are desperate to try and stop the impending squeeze? They're adding new rules to Halt stocks as they're running up. But I Want to talk about how AMC will escape around these halts as trading hooks are only active During certain hours of the day since they tuned and let's make some money. and now that I've straight in with the compilation. So Jan Jack's week is saying.

On pressure from Wall Street's lobbyists, the Senate and the House Committee for Financial Services has recommended special hooks to the SEC tailored to stop upward volatility in so-called meme stocks like AMC and GameStop. Obviously, these stocks have massive short interest, but also significant retail interest as well, capable of threatening short sellers to capitulate and sending the banking sector into a tailspin. It says those rules weren't there in January and June of 2021 and this is a different system from what it was back then and he said the Beast has changed strategy and it's designed to try and deal with us now. this document where it's headed: Understanding the influx of retail: Traders It says Congress should adopt legislation mandating key Regulators including the SEC and Finra to study how existing Market rules and supervision will need to evolve to address new technological developments including the possibility of social media driven Market activity.

And therefore, as a result, the SEC should consider ways to implement trading hosts tailored to respond to concentrated volatility in a limited number of stocks AK Obviously, AMC GameStop Ape and the other meme stocks too. So basically the Senate and the House Committee on Financial Services wants to implement special trading hosts just solely for AMC GameStop and other meme stocks as well that have a high retail interest. But now this is the part where it gets very, very important and how AMC will escape even these special trading hooks. Travis has tweeted about the stock I touched on yesterday which is ticker symbol T-o-p and he said literally with no holes, the stock ran from six dollars to 117 dollars per share.

Yeah, he said there was no limit, upper limit down, or U3 halts. but when it's AMC and Ape, the stock gets halted every five seconds. Now this is partly true, but also party not true. So let me explain and break it down and explain how AMC will escape these special trading hooks now during the trading hours yesterday.

Top: Financial did increase from six dollars to twenty dollars per share, but it did actually experience a few halts along the way in this first run up and in this second run up. So the stock only increased by 14 per share and experienced multiple halts at that time during those trading hours. But importantly, the stock then ran from twenty dollars per share up to at its highest over two hundred and twenty dollars per share and experience zero trading hooks whatsoever. Because that trading happened in the after hours trading.

During Mark hours, the stock gained 14 per share and experienced multiple trading halls. But in the after hours it gained over 200 per share and had zero Oops. That's because there is no rule to hold stocks that are trading in the after hours markets. Also, the exact same rules still apply to AMC and to GameStop as well, and therefore an AMC and GameStop do start to run up.

Yes, it's likely they won't be running up during Market hours, and if anything, may actually be falling, but during the after hours, when there's no hooks and regulations, the stocks will fly. If you go on your trading platform and scroll all the way back to June of 2021 for AMC and look at the pre and post Market hours, AMC made the majority of all of its moves in those pre and post Market hours and actually didn't move so significantly during trading hours. For example, an AMC ran up to 77 per share that was actually done in the aftermarket hours, not during the trading session, and again when AMC did the majority of its run from 14 up to 35 or 40 dollars that was also done in the pre-market before trading actually commenced. And this is how AMC will still end up squeezing regardless of these special halts that have been recommended to the SEC.

So I think while it is frustrating to see that additional special halts are trying to be implemented specifically to stocks that have a lot of retail interest, I Don't think it will destroy the squeeze because the majority of squeezing will actually happen in the pre and post-market hours when there's no trading hooks. not during those regular trading hours. we know, during the regular hours AMC always gets smashed back down. But that's not when the majority of the squeeze was ever going to happen because those trading halts have always existed now.

Frank Has also tweeted saying the Ficc has also just approved changes to the calculation of the Value at Risk charge. The Value at Risk is the most important calculation apparently in determining the clearing fund deposit requirements. You may remember again back in January 2021 Robin Hood Used the excuse that they failed their Value at Risk calculation and couldn't post their required collateral or their require margin deposit. As Frank Hadavi said, this is the reason why the buy button was hidden back in January and in early of February 2021.

Now, this rule change allows the fixed income clear incorporation to adjust its calculations more flexibly in response to changing market conditions. AKA They're likely going to give these Brokers and these trading platforms more leeway with their value at Risk calculation. Now to start, this sounds kind of sketchy, but actually it might not necessarily be a bad thing if they change that value at Risk calculation. These trading Platformers wouldn't need to turn off the buy button, but again, I'm sure these trading platforms will somehow find a way to manipulate this calculation in their favor and not ours.

He said this helps the Ficc ensure that it collects enough money or margin from its members to cover potential losses if a member defaults. and he said the rule change aims to protect non-defaulting members from bearing the losses caused by a defaulting member and enhance the overall stability of the actual Financial system. Now, actually, this part sounds pretty good because it basically means that anyone that defaults and fails their margin calculations basically gets hung out to dry and everybody else is okay and doesn't get margin called as a result. So they're basically going to encourage failing firms to default on their calculations and end up being margin called.

and they're basically going to make sure that other hedge funds that aren't impacted don't have to bear those losses. That means that when these hedge funds short to AMC do get liquidated, It doesn't impact and destroy the entire Financial system. I Assume the Ficc will just end up bearing any additional losses from the squeeze that cannot be covered by these defaulting hedge funds, but it won't impact the major banking system and they won't need to take money from Pension funds. And it seems that Chuck Schumer is also throwing Finra under the bus for the way they handled Mmtlp.

It says the Finra was concerned about metamaterials November 23rd announcement, but was somehow not concerned enough to actually do anything about it until two weeks after the concerning juicing event. This letter from Charles or Chuck Schumer says thank you for writing to express your concerns regarding recent actions taken by Finra. I Agree that Regulators must enforce rules fairly for everyone it says. As you know Funeral Trading of Meta Materials Series A Preferred Shares or Mmtlp on December 9th, 2022 and he said Funeral does have the authority to Halt trading in certain shares should it believe that ongoing trading has the potential to cause major disruption to the marketplace or significant uncertainty in a settlement of clearing processes.

And he says in the case of Mmtlp Funeral was concerned by the company's November 23, 2022 announcement that Mmtlp series A preferred shares would be automatically canceled on December 14, 2022 and he's basically saying that it's not good that Finra didn't decide to do anything about it on the 23rd of November 2022 and instead left it until a few days before Nmtlp was deleted or de-listed Realistically, Finra should have allowed the event to play out and it like he would have caused a massive disruption to the marketplace and significant uncertainty in a settlement of those shorted shares. and he's also said that Financial Regulators should not give preferred treatment to certain groups I Do hope these politicians can be lobbied harder to actually do something about Mmtlp and allow it to trade for those few final remaining days If Mmtop was allowed to trade once again and those shorts were forced to cover, it's likely many of those shorts would lose billions and potentially end up being margin called on their other short positions too. And obviously if they were margin called on their AMC and GameStop shorts, they'd be forced to close out of those short positions as well, causing the squeeze. And I also wanted to quickly talk about and uncover how Citadel actually had a relationship with FDX and how Citadel and FTX were actually working together.

This post says that Fdx Trading Limited actually has two confidentiality agreements with Citadel dated January 2022 and July 2022 as well. Now a this information has been uncovered from the FDX bankruptcy documents and it's really interesting to see that FTX was indeed working with Citadel. We can see here that FTX Trading Limited has a confidentiality agreement dated the 6th of July 2022 with Citadel Enterprise Asia Limited, and again another confidential global settlement agreement dated the 13th of January 2022 with Citadel Securities America And it's likely this relationship between FTX and Citadel that actually ended up leading to Ftx's demise so that they were obviously trying to unload their short positions into FTX through using those FTX tokenized shares and FTX ended up bearing so much of those liabilities they ended up imploding I Guess it'll be interesting to see whether these Citadel liabilities that were offloaded into FTX fell down with FTX during the bankruptcy or when they were somehow siphoned off to another entity like Ledger X or to Almeida and again, it will be interesting to see what happens going forward to those same liabilities. But guys, be sure to let me know what you think down in the comments below.

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