Welcome back to the channel everyone today, i want to talk about how the number of synthetics must be counted during the squeeze and will shortly be revealed so stay tuned and let's make some money, and now i want to dive straight in with the information so potato Says to ensure a fair market and a first squeeze synthetic shares must be counted added to the float and then bought back. They may say tom, that's all well and good, but how do you know the synthetics will actually be counted well in the sec and the hedges just find a way to skirt around the problem like they always do, and also how will the synthetics actually be counted And why is it important to count them during the squeeze? Obviously we all know the sec have just released a new proposed ruling to include more disclosure around short positions and the daily reporting of shorts as well. But as elon musk says, this is a good move, but it needs to include options and synthetic short positions. But, interestingly, while you may know about the new proposed sec rule around short positions, you may not know about finra regulatory notice 2119.

Now on the screen, you may already be able to see what regulatory notice 2119 is all about, and it's mainly about synthetic short positions. Finra requested comments on short interest position, reporting enhancements and other changes related to short sale reporting and therefore, it seems like not only will short positions soon be revealed, but also synthetic short positions will also be revealed as well. If we go to this finra regulatory ruling, they start their auditing by giving a bit of a background talking about how, at the moment, finra requires shorts to be reported twice per month. This is obviously the data that we see in ortex being pulled directly from finra when the shorts and the failed delivers are reported twice per month every single month, but obviously the main problem is that at the moment, this short date, that's reported, is only the legal Short positions of the legit flow but, as finra has detected it says, finra is considering requiring firms to reflect synthetic short positions in short interest reports as well, and it says, for example, enhanced short interest.

Reporting could include synthetic short positions achieved through the sale of a call option and purchase of a put option, which is those married and divorced puts, but they also said or through other strategies as well. But we also know that another strategy to create a synthetic short is through the use of a fail to deliver. That's never actually delivered upon a market maker effectively creates these additional shares in order for a hedge fund to short when they can't actually locate any shares. When these ftds remain open and the can is kicked and they're hidden in the options chain, that's when an ftd effectively turns into a synthetic short or a synthetic share, as the shares are created, but never actually located and deleted.

It says finra believes this information would assist finra in understanding the scope of market participants, short sale activity, specifically regarding the use of less traditional means of establishing short interest, and they also said that finra is considering requiring firms to report short interest data to finra. More frequently, instead of submitting data twice, monthly, hedge funds could be required to submit short interest data on a daily or weekly basis and they've even said that, to the extent that market participants wish to avoid disclosure, they may respond to a new reporting requirement by instead Taking similar positions that fall outside the bounds of the proposed definition of a synthetic short position, a synthetic short position, reporting requirement with a broader scope than the sale of a call option and purchase of a put option with the same expiration date and price could potentially Mitigate such avoidance and therefore finra are trying to cover all basis by not just specifying the synthetic short reporting requirements to put on call options. Only, but basically any kind of synthetic shares and finra are also considering requiring firms to report more information around fail to delivers. Exactly who the felder delivers were allocated to and exactly how they were resolved as well and in this way, filter delivers will become much more difficult to hide in the options chain and it become much more difficult to kick the can guys.

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But why my synthetic shares be counted and included in the float for a fair and complete squeeze, obviously for a full position to be closed out. Both the legit shorts and the synthetic shorts must be covered. The synthetic shorts can't just be deleted after the legit shorts. Have been closed out because that's not how a trade works, a trade has to have an open and a close to be properly completed from an accounting perspective when a short position is created, those shares are borrowed or technically not borrowed and sold into the market, and Therefore, to close out a short position, whether it's a legit short or a synthetic short, those shares have still been sold into the market, so they need to be purchased back.

The difference between a legit short and a synthetic short is with a legit short shares, are located, sold and then purchased back, and the position is closed out because the shares are then returned to the rightful owner, but with a synthetic short, the shares aren't technically borrowed From anyone they're created but they're still sold to an end customer, then they have to be purchased back and instead of being returned because they never really borrowed them from anyone. They're instead deleted, but to be able to delete the synthetic share. They still have to purchase it back from the person that they sold it to or effectively purchase enough shares back to close out the full position and therefore the squeeze won't be complete and the shorts won't be covered until all of the synthetics have been brought back And effectively deleted, as eddie says, if synthetic shares don't exist, then cover your short positions: hedges, if there's only really a hundred million shortage shares and they're only down 10 to 15 dollars per share, that's only one to 1.5 billion dollars, which is a fairly small loss For those giant hedge funds, but obviously if there was only a hundred million shortage shares and synthetics didn't exist, then obviously the hedges would have covered by now. You and i already know, what's stopping the hedges from covering and why they can't cover.

And it's because there's billions of synthetics in existence and peter han knows that he's been right, the entire time he says. Remember all of those months. I've been complaining about the data not accurately reflecting short positions in amc and other stocks. Well, if it wasn't a problem, why is the sec and finra proposing these rule changes and he says - and why is the department of justice considering ricoh charges in its short-selling investigation? He said i'm happy to admit when i've analyzed something incorrectly, but nothing.

I've seen in the last 12 months counteracts my original hypothesis and meanwhile, the sec finra and the doj are moving things along, and some financial research reports have notably slowed down their hit piece production and, in fact, may have even been deleting their past articles peter han. Obviously knows he's been right about synthetic shorts the entire time, and he knows that this play is coming to a close coin. Telegraph recently, tweeted breaking news. U.S banks are preparing for cyber attacks and, as sith bull sakia says, sir begins.

Maybe the u.s government are going to blame the upcoming market crash on cyber attacks against banks. Instead of admitting to the over leveraged shorts and the amc and gamestop squeeze they're going to blame the market crash on these cyber attacks, it gives them the perfect alibi for the mainstream media and effectively cover up all of the corruption on wall street. By just blaming on cyber attacks, but we know that when the market does crash, amc and gamestop will squeeze and there's no way around that, because the synthetic shorts and the over leveraged shorts must be covered. Guys be sure to.

Let me know down in the comments below what you think about the true number of synthetic shorts shortly being revealed 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.