Welcome back to the channel everyone now today, you might have seen a lot of talk about amc trading for 800, a share on the dark pool. So i want to clear up some of the confusion about that and talk about. What's real and what's not real, 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 3 800 of you that have 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 heist showed amc spiked to a high of almost eight hundred dollars.

A share on the 10th of august at around 9 00 am and he's included a screenshot from the python network. So let's talk about it. There's a post here that goes a bit more in depth. He said another interesting tidbit i came across today is pyth a network that tracks trades in real time using blockchain encryption check out the price for gamestop and gamestop was trading around two thousand five hundred dollars a share.

He said whoa, two thousand five hundred dollars a share and it's traded for as much as five thousand dollars a share. What the hell guys check out the month view on the pyth link also keep a close eye on it day in and day out. It will be able to tell us in real time when the dark pool price spikes said it's spiking at times of critical mass, when the stock is about to make a major move. For instance, today, when we've reached the heavy resistance level of 164, very briefly and on the monday, the dark pool prices spiked well into the thousands they buy at those prices and then reroute the orders, probably going through memx.

I'm sure there are others, but memx seems to be the big one until it's suppressed. Clearly, someone is paying big bucks for those shares at times of critical mass, presumably to buy them in the dark pools for two to five thousand dollars a piece and then bid on them for a dollar and ten cents on the new york stock exchange. But wait there's more. Last but not least, today at 2 10 pm cst there were attacks on our stock and another stock that shall not be named here is a comparison of the movie stock and the gamestop price action, just as the memx bid came through, corresponds perfectly with our coordinated Ladder attack also python is very legit and i think it can be a very valuable tool moving forwards.

So let's have a look at the pyth chart for amc on the daily time frame. As you can see, the amc stock price has been following the lit exchange price. The market was obviously closed overnight and was pretty much following the late exchange price. Yesterday, too, we can see that we've got an open price, a low, a high and a close, an average price which is going to be somewhere in the middle there and an average confidence of one dollar and 51 cents.

If we then zoom out to the weekly time frame and have a look at some of these price spikes, we can see the low price of 34., the high of 768, the close of 36 and the average of 135, which is somewhere in the middle of all Of those, but it also comes with an average confidence of plus or minus 254 dollars, and what that's basically saying is that for this specific point in time the price of amc was 135 dollars per share plus or minus 254 dollars. So it was either somewhere near 400 or somewhere near negative 100. So python actually have a post on their page saying what is confidence and uncertainty in a price python data providers stream a price along with the confidence and uncertainty that they estimate using information available to them. For example, a data provider focused on a particular market could represent confidence as the bid or ask spread on that venue, as in the difference between that bid, price and the ask price.

That variance is going to be the uncertainty because it could be plus or minus one cent or plus or minus a few cents. Alternatively, focused on multiple venues. A data provider could represent confidence as a function of where they expect trades to occur, as in in different markets. There might be a very slightly different price healing, defines measurement uncertainty a bit more in depth, and it says in scientific and engineering fields.

An observation or measurement is almost always accompanied by a measurement uncertainty. The distance between two points might be measured to be 10.12 meters plus or minus 0.01 meters time it took for a car to travel. That distance might be measured to be 1.23 seconds plus or minus 0.05 seconds. The measurement uncertainty is the observer's best estimate of how far off from the true value, their measurement is likely to be given the precision of their measuring equipment, the difficulty in making the measurement and potentially other factors the observer deems important so considering a single stock say Tesla, a single stock market.

What is the price of tesla? It's a seemingly simple question, but there are subtleties even here at any given moment in time. There is no one price for tesla. There is the best bid price, the price you currently sell, tesla at and the best ask price. The price you could currently buy tesla at these are typically close together, but the difference between them, the so-called bid-ask spread, could certainly be viewed as an uncertainty of what the price of tesla currently is and with the midpoint halfway between the best bid and the best Ask being an estimate of the price itself.

It also then goes on to talk about the various different exchanges, such as the new york stock exchange, the nasdaq bats, iex, bsx and more, and it says, as a result of regulation nms. It generally keeps the various exchanges from having different prices, though some of the smaller exchanges will often have a wider bid in ask spread than the larger more liquid exchanges, and i think that last part is the key here. Those smaller less liquid exchanges are going to have much wider bid and ask spreads now. Python doesn't actually disclose how many different exchanges they collect.

Data from they could just be collecting data from the main stock exchanges, but they could also be collecting data from the us dark pools. The uk dark pools the non-atss and everything else and everything in between. As a result, they may be collecting data from some very, very small, very illiquid exchanges that don't have many trades going through, and i think that's why you see giant disparities in their average confidence. Like here, when the average confidence is plus or minus 254 dollars, maybe most exchanges have the amc price at this point pinned at 34.67 the low, but maybe there's one exchange that has almost no amc transactions in.

Maybe it's just one sell order for 768 dollars that never got filled, but because that sell order was there it's included in the data set and therefore it's included in the high of 768 dollars and therefore skews the average price and because python realizes that one transaction Is skewing the average price so much? That's why they have such a giant average confidence variance of 254.. Therefore, not very accurate and therefore they're, not very confident that that is the true amc price to back up that fact. It says that the low price was 34 and the close was 36. Therefore, it probably traded somewhere between 34 and 36, just with one very unusual, buy or sell order placed at 768 they're probably never executed.

Therefore, i don't think this is hedgie's. Buying amc shares in the dark pool for 768 and 50 cents. I think it would be very, very unusual for a hedge fund to do that, because they could have just waited one more hour and bought it even at a high of 36.60. I do, however, think there is a second book, because obviously the non-ats citadel connect is completely separate from a stock exchange and because it's a dark pool and they don't have or a form of dark pool, and they don't have to report the trades.

That is naturally a second book and it is going to have its own price, but because i don't have access to citadel connect. I can't tell you what that price is, but i don't think it was 768 dollars in that specific point in time here, because anyone trading in citadel connect could have just waited one more hour and bought it for 36 dollars a share, however, something that is real Today is that citadel wants the sec to reconsider the updated margin requirements. Citadel wrote a letter to the sec to reconsider the inter-dealer exemption from uncleared initial margin rules, while the cftc and prudential regulators have applied initial margin requirements to into dealer uncleared otc derivative transactions, the commission provided an exemption to this important segment of the security-based swaps market. This means that a dealer regulated by the commission is not required to post or collect initial margin for uncleared security-based swaps entered into with another dealer exempting the interdealer portion of the security-based swaps market from unclear initial margin requirements undermines the regulatory objectives of mitigating systematic risk And promoting central clearing the cftc and prudential regulators specifically concluded that, in order to effectively mitigate systematic risk, it was necessary to apply initial margin requirements to uncleared into dealer transactions, and the commission's final margin rule does not adequately explain how it reached a different conclusion.

In addition, data shows that voluntary clearing rates increased for inter-dealer transactions following the implementation of uncleared initial margin requirements by other regulators. In contrast, data also shows that bilateral trading is less costly than central clearing if there is an available exemption from uncleared initial margin requirements. As a result, the commission's into dealer exemption can be expected to create a disincentive to centrally clear. In light of the above, we recommend that the commission reconsider the exemption from initial margin requirements for uncleared into dealer, security-based swap transactions.

Basically, citadel wants the sec and the nfcc to reconsider the increase to margin requirements by 25 times the nscc increased those margin requirements from ten thousand dollars to 250 000, but so why does citadel want the sec and the nfcc to reconsider, increasing their margin requirements? Well, during his opening remarks, dtcc's bob stewart executive director of product management for institutional trade processing discussed the impact of phase 5 of uncleared margin rules for over-the-counter derivatives which kicks in on september, the 1st 2021.. He said there will be an upsurge in the volume of margin calls and an increase in the need for third-party custodians to safe keep collateral. As a result, umr will likely require many buy-side firms to make significant changes to their existing collateral management processes. Basically, the executive director of product management expects there to be a massive wave of liquidations coming on september 1st as a result of these increased margin requirements.

Basically, these hedges are going to have to have a lot more cash on hand when they're taking part in over-the-counter. Otc derivative trades such as put and call options - and i imagine, there's a bunch of hedge funds out there that are very, very heavily, dug into put options such potentially as per options on amc, and they don't actually have that much cash on hand and therefore don't Meet the margin requirements, therefore, on september 1st, i would like to see a few hedge funds getting liquidated and a nice spike in the amc price guys be sure to. Let me know down in the comments below what you think about pyth and what you think of these increased margin requirements. Do you think it's going to cause some potential liquidations and margin calls also guys i wanted to let you know that instead of partnering, with weibull i've now partnered with moomoo as my main stock trading platform, moomoo has a host of cool benefits such as super up-to-date News options order flow, an earnings, calendar and a whole social media platform inside of their app.

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