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The original was posted on /r/Superstonk by /u/GurtGB on 2025-01-28 16:05:52+00:00.
TLDR from ReesePolitics on X:
Wall Street's 'trillion dollar' naked shorting and failure-to-deliver (FTD) problem is about to hit the fan in the US and EU.
A user has submitted multiple FOI requests to the Bank of England, who holds digital records of FTDs for US-based securities including $GME -- these requests were DENIED because it would take more than '18 hours' to complete the task (which is the maximum amount of time allowed for FOI inquires).
The SEC has also recently denied $GME FTD requests citing 'unforeseeable harm' if they were to publicize the numbers.
However, the author was able to uncover some eye-popping numbers for overall settlement fails (which included more than just securities): Clearstream Banking S.A. (the international CSD based in Luxembourg, which has an indirect link to the DTC), reported $576 trillion Euros in settlement fails in 2022.
In the US, $UBS admitted that over a 10-year period, they failed to clear FTDs on 5,300 occasions while executing a further 71,000 short sales with the outstanding FTDs. Their punishment? A $2.5 million fine, which likely pales in comparison to the amount of securities failed and sold short.
The good news is -- there's new SEC leadership in place, and more enforcement of these shady practices could come. A broker dealer should have to pay a minimum fine of matching EVERY dollar on a security that was failed or nakedly sold short. Or better yet -- they should be forced to actually buy the stock.