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Yah I totally get it, the problem is they did not have anything to pump, now we are live let’s see what he has in store for us pr wise.
💲The PriceFeed CIP introduces the "PriceFeed" contract, which is crafted to function as a decentralized oracle responsible for aggregating and supplying asset price data.
Make sure to find out more here:↘️
https://cip.coreblockchain.net/cip/cbc/cip-104
✅CIP-712, the Core Signature Verification Standard, establishes a set of guidelines for the secure encoding and verification of structured data signatures within applications built on the Core Blockchain.
Read more in our CIP article.↘️
https://cip.coreblockchain.net/cip/cbc/cip-712
Learn about the CBC20 Token Standard in a series of articles detailing:↘️
🟢Chequable, Wrapper, Equivalent, Asset, Bountiable and Base Token
🟢Ownership Management for Smart Contracts
🟢Caller Contract, Secure Execution of On-Chain Transactions
https://cip.coreblockchain.net/cip/
https://t.me/codetechcc/925
That’s for sure! It was also nice to see INTL at 1.02. INTL also move there ask to 1.85
Need CSTI to move above a 1.10
So true, I believe there is a plan to let the world know what we own here.
You don’t spend 9 plus years in development and close to 30 million dollars to let this die
Let’s see what they pr next month
Hoping to see there pr campaign roll out!
Also would love to see client list.
Plus looking forward to the 10q. Hoping for 20% increase in revenues
ARAT .80 Arax Holdings Corp Revolutionizes Digital Asset Management with Core Token Deployment on Core Blockchain
Arax Holdings Corp. (ARAT OTC:PKC) and Core Business Holdings announce the successful deployment of Core Token on Core Blockchain and, with it, the revolutionary CBC20 digital token standard, marking a new era in digital asset management.
Following the acquisition of Core Business Holdings (CBH) earlier this year, the launch combines Arax Holdings Corp’s digital asset innovation with world-leading compliance and regulatory frameworks. Therefore, we proudly announce the Core Blockchain EcoSystem engine consisting of Core Token, Ping Exchange, a hybrid exchange, Wall Money, a regulated lifestyle platform, and Core Pay, a new-generation payment gateway.
Each part of the CBH EcoSystem engine comprises several key components designed to enhance our digital asset management capabilities:
? Core Token: Core Token, as a tokenization and smart contract platform, is set to revolutionize asset tokenization, offering unprecedented flexibility and security in digital asset management.
? Ping Exchange: Ping Exchange, a hybrid digital asset exchange, combines the speed and user-friendliness of centralized platforms with the security and transparency of decentralized systems.
? Wall Money: Wall Money emerges as a regulated lifestyle platform, seamlessly integrating digital asset management into everyday life while ensuring compliance with the highest regulatory standards.
? Core Pay: Core Pay, a next-generation payment gateway, simplifies digital transactions, offering users a secure and efficient way to manage payments within the Core ecosystem.
This multifaceted launch underscores Core Business Holdings' position as a pivotal element of Arax Holdings Corp.'s diverse and dynamic portfolio, propelling us into a future where digital asset management is more accessible, secure, and efficient.
Arax Holdings Corp. and Core Business Holdings acknowledge the pioneering efforts and significant strides made in the DeFi space on existing blockchains, recognizing them as foundational steps in the evolution of digital finance. Building upon this groundwork, we are committed to enhancing and refining these early developments, integrating them into a more cohesive and robust Web3 ecosystem. This commitment is rooted in a vision of a world that not only deserves but urgently needs a more secure, transparent, and user-focused digital experience that seamlessly bridges the divide between traditional finance and the burgeoning possibilities of the blockchain.
Core Token: A Revolution in Digital Asset Management
We are excited to confirm that Core Token was officially deployed on the Core Blockchain network at 17:23 UTC on November 17th 2023, marking its existence as a tangible and ready-to-distribute asset. This momentous occasion can be witnessed on blockindex.net, the official block explorer for Core Blockchain. This deployment demonstrates the tangible value of Core Token and showcases the capabilities and potential of the newly established CBC20 Standard.
Core Token is at the forefront of the digital revolution. As a token based on the Core Blockchain, employing the cutting-edge CBC20 standard, Core Token is more than just a digital asset. It is a token that opens doors to a myriad of services in the Core Ecosystem and facilitates the integration of real-world assets into the digital asset management platform. With a total supply of 1 billion tokens, Core Token is set to redefine the landscape of digital currencies and asset management, where efficiency, security, and adaptability take center stage.
The technical advancements inherent in CBC20 facilitate seamless asset conversion, ensuring that digital assets can move fluidly across different forms and platforms. This capability streamlines the user experience and injects much-needed liquidity into the digital asset market, making it more vibrant and accessible.
At the heart of CBC20's innovation is a commitment to accuracy and transparency in asset valuation. Real-time pricing ensures that digital assets are always traded at their true market value, instilling confidence and trust among users. This feature is crucial in a market known for its volatility, as it provides a stable and reliable foundation for asset management and investment decisions.
Enhanced security and convenience are also paramount outcomes of the CBC20 Standard. The ability to execute transactions securely, even in offline modes, adds a new layer of flexibility and significantly reduces the risk of cyber threats. This feature is invaluable in an era where digital security is a top concern for users and investors alike.
Moreover, the incentivization mechanism introduced by CBC20 creates a vibrant ecosystem where user participation and engagement are actively encouraged. By allowing rewards for on-chain activities, CBC20 fosters a more active and robust blockchain network, driving innovation and growth within the Core Ecosystem.
Finally, the upgradable nature of the CBC20 Standard ensures that Core Token and its ecosystem are future-proof. This adaptability means that as new technologies and market needs emerge, Core Token can evolve to incorporate these advancements, maintaining its relevance and leadership in the digital asset space.
These technical enhancements collectively elevate the Core Token beyond a mere digital currency. They transform it into a dynamic and integral component of the digital asset world, redefining how assets are managed, valued, and secured, paving the way for a more robust, efficient, and user-centric future in digital asset management.
CBC20 vs ERC20: Setting New Standards in Blockchain Technology
The CBC20 Standard is a groundbreaking advancement over the traditional Ethereum-based ERC20 token standard. ERC20 has been the bedrock of blockchain token functionalities, enabling basic yet crucial operations like token transfers, approvals, and overall token management.
However, the CBC20 Standard elevates these foundations to new heights. It retains all the essential features of ERC20 and introduces a suite of advanced functionalities designed to revolutionize digital asset management. These enhancements include sophisticated contract capabilities, such as AccessControl, which presents a new level of management for roles and user interactions, creating a more secure, adaptable, and user-friendly experience for everyone involved.
Key improvements are its focus on scalability and adaptability – critical factors for any technology in this fast-paced digital age, not simply meeting today's needs but also being ready for tomorrow's challenges. CBC20 brings enhanced customization options, bolstering the security and flexibility of digital assets, and ensures that the system can evolve with the ever-changing landscape of blockchain technology.
In essence, CBC20 is more than just an upgrade; it's a testament to Arax's commitment to pushing the boundaries of blockchain technology, offering heightened security, control, compliance, and versatility in digital asset management.
The Transformative Impact of Real-World Asset Tokenization
Tokenization is reshaping the future of asset funding, trading, and management. By 2030, the market for tokenized assets, including real estate, art, and financial instruments, is expected to exceed $4 trillion. This shift represents a significant portion of the global economy, indicating a major transformation in how we value and exchange assets.
Core Blockchain is at the forefront of this evolution with its Core Token Smart Contract and integrated CorePass KYC and AML compliance platform. We are transitioning to a world where virtually any asset, from luxury items to complex financial products, can be tokenized. This move into digital tokens marks a turning point for blockchain technology, particularly in private market assets.
The growth potential here is enormous. For instance, Citi predicts a more than 80-fold increase in private market tokenization by 2030. Similarly, the Boston Consulting Group forecasts tokenization could unlock a $16 trillion global market, offering significant cost savings in clearing and settlement processes. Bain Capital suggests that tokenization could eventually encompass up to $540 trillion in private assets, currently unrepresented in the financial system.
Additionally, the rise of Central Bank Digital Currencies (CBDCs), likely backed by regulated fiat currencies and programmable for smart contracts, could add up to $5 trillion to this market. Core Business Holdings’ blockchain-based banking products align with this trend, highlighting our role in this groundbreaking financial landscape.
Understanding Tokenization in the CBH Ecosystem
ARAX's Core EcoSystem engine leverages highly secure, fully decentralized blockchain technology to bring efficiency, transparency, accountability, and enhanced liquidity to the forefront for real-world assets. This democratization of access to various assets changes investment perspectives and interactions with economic elements, offering a digital representation of assets and attaching rights and information in a programmable manner. It makes previously indivisible or hard-to-trade assets manageable and transaction-friendly.
CorePass, integrated with all the CBH EcoSystem platforms, complements this by providing a secure, regulatory-compliant environment through Regulation Technology, opening investment avenues to a broader audience. It ensures continuous compliance with KYC and AML standards, making the process secure and trustworthy.
The CBH Ecosystem platform facilitates several key use case sectors that will be tradable on ARAX's hybrid Ping Exchange Platform:
Sector Description
Real Estate Tokenized commercial, residential, and development projects.
Financial Assets Including public and private equity, commodities, and investment funds.
Infrastructure Smart city solutions, energy, transportation, waste management, and communication infrastructures are deployable on networks like the Lunaº Mesh.
Art and Collectibles Digital representation of fine art, luxury wearables, and collectibles.
Gaming and Entertainment In-game assets, digital art, and entertainment-related tokens.
Data Personal, intellectual property, financial, and IoT data are securely exchangeable via Core Pass and integrated digital attribute management platforms.
Commodities and Metals Tradeable assets, including precious metals and other commodities.
NFTs and Gamified Tokens Unique digital assets and tokens for gaming and entertainment.
DeFi-Related Instruments Decentralized finance instruments, including debt, underwriting, and more.
The interoperable Tokenization and Smart Contract platform ensure, at all times, digital asset token security as the Core Blockchain is built on ED448 encryption standards, and assets are stored and traded in cold wallets, and when traded, offline signatures are used in the exchange process, a key feature offered by the Ping Exchange. Other features of tokenized real-world assets to be traded on the Ping Exchange include
? Enhanced asset-backed token accessibility and transparent 24/7 trading.
? Efficient, paperless transactions with reduced costs.
? Lower costs and access for individual investors.
? Increased access for SMEs and exposure to new markets.
? Ongoing KYC and AML monitoring and verification
CorePass ID data and any connected digitally attributed data are not stored on any platforms to ensure complete compliance and provide any potential data location regulatory compliance. The CorePass warrants users secure self-sovereign identity information, including any digital attributes, as all data is facilitated in a decentralized p2p federated data network. At the same time, the platform maintains all data constituents on the user's device for interconnected p2p data requests and verifications between users. Future integration of the Lunaº Mesh will even allow all such data to be geographically decentralized if required by users.
With the expected surge in tokenized assets, Core Business Holdings is poised to capitalize on this growth, particularly in the real estate, financial assets, and Data industries. The integration with CorePass ID's fully decentralized Digital Identity ensures compliance and security, allowing any individual or institution to attach any attribute in the form of a tokenized asset through the Core Token Smart Contract Platform to a CorePass ID and to connect such tokenized digital assets to a Digital Asset Management Platform.
Embark on the Tokenization Journey with ARAX and CBH
Despite its potential, tokenization faces hurdles like regulatory ambiguity and limited public understanding. CorePass addresses these by offering clear regulatory frameworks, digital asset and stablecoin trading regulations, market accessibility, accredited investor verification, and comprehensive AML and KYC controls, ensuring a balanced approach that enhances adoption and protects investors at all times. Core's holistic approach to transparent and traceable accountability while fostering innovation will expand its platform reach in driving the Core Token value as well as the shareholder value of ARAX.
ARAX and Core Blockchain Holdings invite businesses to explore tokenization's potential within their operations and invite any interested people and organizations to join the soon-to-be-released Blockchain Hub, an affiliated central point of information on blockchain-based projects. Starting with a tokenization-readiness workshop, the Blockchain Hub offers guidance in developing a strategic approach and partnering with leading technology providers to ensure seamless integration tailored to specific needs.
In conclusion, ARAX, CBH, and CorePass are not just participating in the tokenization wave of real-world assets; they are shaping its future. By offering a secure, compliant, and versatile platform, they are poised to lead the charge in redefining digital asset management and investment in the digital age.
We are excited to confirm that Core Token was officially deployed on the Core Blockchain network at 17:23 UTC on November 17th 2023, marking its existence as a tangible and ready-to-distribute asset. This momentous occasion can be witnessed on blockindex.net, the official block explorer for Core Blockchain. This deployment demonstrates the tangible value of Core Token and showcases the capabilities and potential of the newly established CBC20 Standard.
HUGE 8K WOW!!
Arax Holdings Corp Revolutionizes Digital Asset Management with Core Token Deployment on Core Blockchain
Arax Holdings Corp. (ARAT OTC:PKC) and Core Business Holdings announce the successful deployment of Core Token on Core Blockchain and, with it, the revolutionary CBC20 digital token standard, marking a new era in digital asset management.
Following the acquisition of Core Business Holdings (CBH) earlier this year, the launch combines Arax Holdings Corp’s digital asset innovation with world-leading compliance and regulatory frameworks. Therefore, we proudly announce the Core Blockchain EcoSystem engine consisting of Core Token, Ping Exchange, a hybrid exchange, Wall Money, a regulated lifestyle platform, and Core Pay, a new-generation payment gateway.
Each part of the CBH EcoSystem engine comprises several key components designed to enhance our digital asset management capabilities:
? Core Token: Core Token, as a tokenization and smart contract platform, is set to revolutionize asset tokenization, offering unprecedented flexibility and security in digital asset management.
? Ping Exchange: Ping Exchange, a hybrid digital asset exchange, combines the speed and user-friendliness of centralized platforms with the security and transparency of decentralized systems.
? Wall Money: Wall Money emerges as a regulated lifestyle platform, seamlessly integrating digital asset management into everyday life while ensuring compliance with the highest regulatory standards.
? Core Pay: Core Pay, a next-generation payment gateway, simplifies digital transactions, offering users a secure and efficient way to manage payments within the Core ecosystem.
This multifaceted launch underscores Core Business Holdings' position as a pivotal element of Arax Holdings Corp.'s diverse and dynamic portfolio, propelling us into a future where digital asset management is more accessible, secure, and efficient.
Arax Holdings Corp. and Core Business Holdings acknowledge the pioneering efforts and significant strides made in the DeFi space on existing blockchains, recognizing them as foundational steps in the evolution of digital finance. Building upon this groundwork, we are committed to enhancing and refining these early developments, integrating them into a more cohesive and robust Web3 ecosystem. This commitment is rooted in a vision of a world that not only deserves but urgently needs a more secure, transparent, and user-focused digital experience that seamlessly bridges the divide between traditional finance and the burgeoning possibilities of the blockchain.
Core Token: A Revolution in Digital Asset Management
We are excited to confirm that Core Token was officially deployed on the Core Blockchain network at 17:23 UTC on November 17th 2023, marking its existence as a tangible and ready-to-distribute asset. This momentous occasion can be witnessed on blockindex.net, the official block explorer for Core Blockchain. This deployment demonstrates the tangible value of Core Token and showcases the capabilities and potential of the newly established CBC20 Standard.
Core Token is at the forefront of the digital revolution. As a token based on the Core Blockchain, employing the cutting-edge CBC20 standard, Core Token is more than just a digital asset. It is a token that opens doors to a myriad of services in the Core Ecosystem and facilitates the integration of real-world assets into the digital asset management platform. With a total supply of 1 billion tokens, Core Token is set to redefine the landscape of digital currencies and asset management, where efficiency, security, and adaptability take center stage.
The technical advancements inherent in CBC20 facilitate seamless asset conversion, ensuring that digital assets can move fluidly across different forms and platforms. This capability streamlines the user experience and injects much-needed liquidity into the digital asset market, making it more vibrant and accessible.
At the heart of CBC20's innovation is a commitment to accuracy and transparency in asset valuation. Real-time pricing ensures that digital assets are always traded at their true market value, instilling confidence and trust among users. This feature is crucial in a market known for its volatility, as it provides a stable and reliable foundation for asset management and investment decisions.
Enhanced security and convenience are also paramount outcomes of the CBC20 Standard. The ability to execute transactions securely, even in offline modes, adds a new layer of flexibility and significantly reduces the risk of cyber threats. This feature is invaluable in an era where digital security is a top concern for users and investors alike.
Moreover, the incentivization mechanism introduced by CBC20 creates a vibrant ecosystem where user participation and engagement are actively encouraged. By allowing rewards for on-chain activities, CBC20 fosters a more active and robust blockchain network, driving innovation and growth within the Core Ecosystem.
Finally, the upgradable nature of the CBC20 Standard ensures that Core Token and its ecosystem are future-proof. This adaptability means that as new technologies and market needs emerge, Core Token can evolve to incorporate these advancements, maintaining its relevance and leadership in the digital asset space.
These technical enhancements collectively elevate the Core Token beyond a mere digital currency. They transform it into a dynamic and integral component of the digital asset world, redefining how assets are managed, valued, and secured, paving the way for a more robust, efficient, and user-centric future in digital asset management.
CBC20 vs ERC20: Setting New Standards in Blockchain Technology
The CBC20 Standard is a groundbreaking advancement over the traditional Ethereum-based ERC20 token standard. ERC20 has been the bedrock of blockchain token functionalities, enabling basic yet crucial operations like token transfers, approvals, and overall token management.
However, the CBC20 Standard elevates these foundations to new heights. It retains all the essential features of ERC20 and introduces a suite of advanced functionalities designed to revolutionize digital asset management. These enhancements include sophisticated contract capabilities, such as AccessControl, which presents a new level of management for roles and user interactions, creating a more secure, adaptable, and user-friendly experience for everyone involved.
Key improvements are its focus on scalability and adaptability – critical factors for any technology in this fast-paced digital age, not simply meeting today's needs but also being ready for tomorrow's challenges. CBC20 brings enhanced customization options, bolstering the security and flexibility of digital assets, and ensures that the system can evolve with the ever-changing landscape of blockchain technology.
In essence, CBC20 is more than just an upgrade; it's a testament to Arax's commitment to pushing the boundaries of blockchain technology, offering heightened security, control, compliance, and versatility in digital asset management.
The Transformative Impact of Real-World Asset Tokenization
Tokenization is reshaping the future of asset funding, trading, and management. By 2030, the market for tokenized assets, including real estate, art, and financial instruments, is expected to exceed $4 trillion. This shift represents a significant portion of the global economy, indicating a major transformation in how we value and exchange assets.
Core Blockchain is at the forefront of this evolution with its Core Token Smart Contract and integrated CorePass KYC and AML compliance platform. We are transitioning to a world where virtually any asset, from luxury items to complex financial products, can be tokenized. This move into digital tokens marks a turning point for blockchain technology, particularly in private market assets.
The growth potential here is enormous. For instance, Citi predicts a more than 80-fold increase in private market tokenization by 2030. Similarly, the Boston Consulting Group forecasts tokenization could unlock a $16 trillion global market, offering significant cost savings in clearing and settlement processes. Bain Capital suggests that tokenization could eventually encompass up to $540 trillion in private assets, currently unrepresented in the financial system.
Additionally, the rise of Central Bank Digital Currencies (CBDCs), likely backed by regulated fiat currencies and programmable for smart contracts, could add up to $5 trillion to this market. Core Business Holdings’ blockchain-based banking products align with this trend, highlighting our role in this groundbreaking financial landscape.
Understanding Tokenization in the CBH Ecosystem
ARAX's Core EcoSystem engine leverages highly secure, fully decentralized blockchain technology to bring efficiency, transparency, accountability, and enhanced liquidity to the forefront for real-world assets. This democratization of access to various assets changes investment perspectives and interactions with economic elements, offering a digital representation of assets and attaching rights and information in a programmable manner. It makes previously indivisible or hard-to-trade assets manageable and transaction-friendly.
CorePass, integrated with all the CBH EcoSystem platforms, complements this by providing a secure, regulatory-compliant environment through Regulation Technology, opening investment avenues to a broader audience. It ensures continuous compliance with KYC and AML standards, making the process secure and trustworthy.
The CBH Ecosystem platform facilitates several key use case sectors that will be tradable on ARAX's hybrid Ping Exchange Platform:
Sector Description
Real Estate Tokenized commercial, residential, and development projects.
Financial Assets Including public and private equity, commodities, and investment funds.
Infrastructure Smart city solutions, energy, transportation, waste management, and communication infrastructures are deployable on networks like the Lunaº Mesh.
Art and Collectibles Digital representation of fine art, luxury wearables, and collectibles.
Gaming and Entertainment In-game assets, digital art, and entertainment-related tokens.
Data Personal, intellectual property, financial, and IoT data are securely exchangeable via Core Pass and integrated digital attribute management platforms.
Commodities and Metals Tradeable assets, including precious metals and other commodities.
NFTs and Gamified Tokens Unique digital assets and tokens for gaming and entertainment.
DeFi-Related Instruments Decentralized finance instruments, including debt, underwriting, and more.
The interoperable Tokenization and Smart Contract platform ensure, at all times, digital asset token security as the Core Blockchain is built on ED448 encryption standards, and assets are stored and traded in cold wallets, and when traded, offline signatures are used in the exchange process, a key feature offered by the Ping Exchange. Other features of tokenized real-world assets to be traded on the Ping Exchange include
? Enhanced asset-backed token accessibility and transparent 24/7 trading.
? Efficient, paperless transactions with reduced costs.
? Lower costs and access for individual investors.
? Increased access for SMEs and exposure to new markets.
? Ongoing KYC and AML monitoring and verification
CorePass ID data and any connected digitally attributed data are not stored on any platforms to ensure complete compliance and provide any potential data location regulatory compliance. The CorePass warrants users secure self-sovereign identity information, including any digital attributes, as all data is facilitated in a decentralized p2p federated data network. At the same time, the platform maintains all data constituents on the user's device for interconnected p2p data requests and verifications between users. Future integration of the Lunaº Mesh will even allow all such data to be geographically decentralized if required by users.
With the expected surge in tokenized assets, Core Business Holdings is poised to capitalize on this growth, particularly in the real estate, financial assets, and Data industries. The integration with CorePass ID's fully decentralized Digital Identity ensures compliance and security, allowing any individual or institution to attach any attribute in the form of a tokenized asset through the Core Token Smart Contract Platform to a CorePass ID and to connect such tokenized digital assets to a Digital Asset Management Platform.
Embark on the Tokenization Journey with ARAX and CBH
Despite its potential, tokenization faces hurdles like regulatory ambiguity and limited public understanding. CorePass addresses these by offering clear regulatory frameworks, digital asset and stablecoin trading regulations, market accessibility, accredited investor verification, and comprehensive AML and KYC controls, ensuring a balanced approach that enhances adoption and protects investors at all times. Core's holistic approach to transparent and traceable accountability while fostering innovation will expand its platform reach in driving the Core Token value as well as the shareholder value of ARAX.
ARAX and Core Blockchain Holdings invite businesses to explore tokenization's potential within their operations and invite any interested people and organizations to join the soon-to-be-released Blockchain Hub, an affiliated central point of information on blockchain-based projects. Starting with a tokenization-readiness workshop, the Blockchain Hub offers guidance in developing a strategic approach and partnering with leading technology providers to ensure seamless integration tailored to specific needs.
In conclusion, ARAX, CBH, and CorePass are not just participating in the tokenization wave of real-world assets; they are shaping its future. By offering a secure, compliant, and versatile platform, they are poised to lead the charge in redefining digital asset management and investment in the digital age.
168 followers
Share Structure
Market Cap Market Cap
8,787,907
11/24/2023
Authorized Shares
140,000,000
11/26/2023
Outstanding Shares
79,890,066
11/26/2023
Restricted
58,160,000
11/26/2023
Unrestricted
21,730,066
11/26/2023
Held at DTC
21,668,566
11/26/2023
Yah me to!!! My wire got screwed up sent on Thursday. computers don’t operate well on thanksgiving. Lol unreal. Pissed would have had some .09 on Friday.
No first time here.
lol, I’m almost half the volume today, someone else will
Now NITE took aver the 118k offering but dropped it to .14, I do not feel it’s real
Hoping GTSM and many others are short, not sure the offering is true
Thanks great to be here! Everyone who knows me knows I’m a long term holder. Looking for dollars here
Yep it’s coming
Yep it’s coming
ASKH .12 landed 100 mil investment
Picked up 20k more
Thanks, this looks to me like a monster, basement buying
Took out the 12’s
I like what i see here, I’m in
Thanks war
HUGE!!!! Mullen Automotive Provides Update on US Customs and Border Protection Application for Class 1 EV Cargo Vans
Potential for vehicles to be sold within all branches of US Government
November 27, 2023 08:30 ET
| Source: Mullen Automotive, Inc.
Is This The End Of Naked Short Selling?
Editor OilPrice.com
Mon, Oct 16, 202329 min read
57
In This Article:
TSLA
+0.53%
FSR
+5.19%
GRPN
+4.32%
BYND
+2.42%
BIG
+2.73%
American investors have been taken for a trillion-dollar ride by naked short sellers, in what could turn out to be the biggest financial regulatory scandal in North American history.
While what is now an all-out war on naked short sellers intensifies, there is a new flashpoint on the front line–a potentially devastating ruling targeting those who are alleged to make illegal naked short selling possible: The Facilitators: bankers and brokers.
On September 29, Federal District Court Judge Lorna Schofield of the Southern District of New York issued a ruling that has the potential to significantly disrupt Wall Street compliance, and is a major first step towards protecting retail investors from fraud.
In Harrington Global Opportunity Fund Ltd. v. CIBC World Markets, Inc et.al, Judge Schofield found that broker-dealers may be primarily liable for manipulative trading initiated by their customers because they serve as “gate-keepers” of trading on securities exchanges.
These broker-dealers have a “continuing responsibility to ensure that their customer’s order flow ... is in compliance with all applicable rules, regulations and laws and detect and prevent manipulative or fraudulent trading … under the supervision and control of the firm,” the judge ruled.
The defendants in the case had motioned to dismiss Harrington’s claims of market manipulation and spoofing (when traders place market orders and then cancel them before the order is ever fulfilled, manipulating prices in the meantime). Judge Schofield denied the motion after hearing arguments that broker-dealers are not responsible for “their customers’ trading”.
Instead, the ruling recognizes that not only are broker-dealers the gate-keepers who can enable illegal naked short selling, but they are responsible, and thus liable for their customers’ actions. Schofield described broker-dealers as “reckless in not knowing that the trades being executed at their customers’ direction were manipulative”.
Naked Short Selling: ‘Financial Weapons of Mass Destruction’
Naked shorting creates a dangerous minefield for retail investors. But it’s a minefield that dealer-brokers may now be held liable for thanks to the recent ruling.
Short-selling itself isn’t illegal. In order to legally sell a stock short, traders must first secure a borrow against the shares they intend to sell. Where the September 29 ruling comes into play is at the point of the broker-dealer. Any broker who enters into a stock short on behalf of a trader must have assurances that his client will make a settlement.
As opposed to a “long” sale (where the seller owns the stock), a “short” sale can be either “covered” or “naked”.
If it’s covered, then there is no issue: the short seller has already borrowed or arranged to borrow the shares when the short sale is made.
When things get naked, the regulatory environment becomes riddled with compliance holes. With a naked short, the short seller is selling shares it doesn’t own and has made no arrangements to buy. That means the seller cannot cover or “settle” in this instance. More profoundly, it means they are selling ghost shares that simply do not exist without their further action. The ability to sell an unlimited number of non-existent shares in a publicly-traded company gives a short seller the ultimate power: To destroy and manipulate a company’s share price at will.
This illicit practice artificially dilutes share prices and then companies find themselves in a position where they have to scramble for capital, Bryan Barkley points out in in-depth research published by the Medium.
That scramble then leads to shareholder dilution in more capital raises, in the best cases, and bankruptcy, in the worst cases. If things get to bankruptcy, Barkley writes, then short sellers win big because they no longer need to close out their short positions.
Following the 2008/2009 financial crisis, naked short selling was classified as illegal in the United States, though that labeling has done nothing to thwart this lucrative game.
What makes the September ruling so impactful is this: Without the big banks and financial institutions’ complicity, this highly destructive form of naked short selling could never happen. Instead, they actively facilitate the destruction of shareholder value.
The reason some big banks allow it, despite their sizable compliance departments, appears quite simple: These illegal transactions are highly lucrative. The short-term windfall profits associated with the creation of counterfeit shares are too tempting to resist.
“[...] brokers will place a marker or pledge to deliver the shares on the investors’ accounts, which are made by the seller’s clearing firm”, Barkley explains. “Abusive and unchecked naked shorting can lead to a loss of shareholder rights, including disenfranchisement by overvoting and the resulting throwing out of votes by brokers to conceal the breadth of the naked shorting problem, which could also lead to fraudulent vote results orchestrated by broker-dealers instead of shareholders.”
It often goes well beyond “ghost” shares, too. The most nefarious of short sellers target companies with negative reports–sometimes with legitimate information, and sometimes with falsehoods or half-truths–to drive down share prices with maximum impact, thus ensuring that the companies lose their ability to obtain financing. Once that process is completed, naked shorters then begin to offer those same companies alternative financing (predatory debt), which they have no option but to accept.
When broker-dealers are complicit in this, the system is broken. And complicity takes many forms, including willful booking of client shares as “long” when they are actually “short”.
Gaps in the regulatory environment have continued to fail to subdue these illegal activities.
Keeping the Brokers in Check: A Global Loophole
Even before the 2008/2009 financial crisis, there were measures in place intended to protect retail investors and regulate the activities of brokers with respect to short selling.
The SEC’s Regulation SHO took effect in January 2005 and specifically targeted “persistent failures to deliver and potentially abusive ‘naked’ short selling”. Amendments intended to further strengthen these regulations were added in 2008, and in 2010, the SEC adopted Rule 201, restricting the price at which short sales could be made when a stock was experiencing significant downside pressure.
Additionally, the SEC notes:
Rule 204 requires firms that clear and settle trades to deliver securities to a registered clearing agency for clearance and settlement on a long or short sale in any equity security by the settlement date or to take action to close out failures to deliver by borrowing or purchasing securities of like kind and quantity by no later than the beginning of regular trading hours on the settlement day following the settlement date for short sale fails, or no later than at the beginning of trading hours on the third settlement day following the settlement date for long sale fails, and fails attributable to bona fide market making (“close out date”). If a firm that clears and settles trades has a failure to deliver that is not closed out by the beginning of regular trading hours on the applicable close-out date, the firm has violated Rule 204 and the firm, and any broker-dealer from which it receives trades for clearance and settlement, is subject to the pre-borrow requirement for that security.
However, as Barkley points out, the SEC does not publish FTDs (failures-to-deliver) of U.S.-issued securities traded and settled abroad (including Canada). This means a significant number of FTDs are never accounted for, essentially creating a naked free-for-all.
Last year, UBS Securities LLC conceded to having failed to close out an astounding 5,300 FTDs in the previous decade, yet still kept executing new short sales in the tens of thousands.
“This is naked shorting and FTD abuse on a significant scale, likely involving many billions of dollars,” Barkley writes.
UBS was fined $2.5 million for violating Regulation SHO. Shareholders were left holding the empty bag, though. And likely lost billions of Dollars in the process.
Also last year, Gar Wood Securities LLC was fined for accepting 2,000 short sale orders without the third-party brokers having located the securities they were borrowing against. Gar Wood was fined $100,000 (which is pathetic).
More recently, in August this year, California-based Wedbush Securities Inc. was fined $6 million by the CTFC (Commodity Futures Trading Commission) for failing to “supervise” trades from third-party brokers, and for dubious private communications. Separately, Wedbush was fined another $10 million by the SEC. And thirdly, in relation to failure to close out FTDs, Wedbush was fined a mere $975,000, a sum that appears to be simply the cost of doing business in the naked short arena.
With regard to violations of Regulation 204, a NYSE American LLC waiver notes:
During the Relevant Periods, the Firm failed to timely close out approximately 2,056 FTD positions due to the Firm failing to timely borrow shares, recall shares that were out on loan or otherwise acquire shares and deliver them in accordance with the requirements of Rule 204(a).
During the period between January 1, 2016 through July 31, 2020, on approximately 390 occasions, the Firm further failed to place a security in the penalty box as required by Regulation SHO Rule 204(b) and to send the notice required by Regulation SHO Rule 204(c).
Additionally, in December 2020, Canadian Cormark Securities Inc and two others pinged the SEC’s radar, with the SEC instituting cease-and-desist orders against Cormark and settling charges against Cormark and two other Canada-based broker-deals for “providing incorrect order-making information that caused an executing broker’s repeated violations of Regulation SHO”. According to the SEC, Cormark and ITG Canada caused more than 200 sale orders from a single hedge fund to the tune of more than $660 million (between August 2016 and October 2017) to be mismarked as “long” when they were, in fact, “short”—a clear violation of Regulation SHO. Cormark agreed to pay a penalty of $800,000, while ITG Canada—one of the other broker-dealers charged—agreed to pay a penalty of $200,000.
The Heroes of the Day
The plaintiffs in In Harrington Global Opportunity Fund Ltd. v. CIBC World Markets, Inc et.al, represented by Warshaw Burstein, LLP, have every reason to celebrate.
The judge’s ruling categorically means that going forward, big banks and financial institutions won’t just be fined for not actively closing shorts, they could be held liable for what so far has been an estimated trillion dollars in losses to retail investors, companies and the U.S. government.
“Brokers can no longer claim that they are not liable for their customers’ trading activities because they are only following their directions. A broker can now be held primarily liable under the federal securities laws when they recklessly fail to monitor, detect and prevent the manipulative or fraudulent trading of their customers,” Warshaw Burstein said in a statement following the judge’s September 29 ruling.
“This decision is a clear and unambiguous warning to broker-dealers that unless they fulfill their gate-keeper responsibilities of monitoring their customers’ trading they can be held primarily liable for their client’s manipulative conduct,” the law firm added.
Canada is one venue where this warning should be heeded first and foremost and where naked short sellers have in our view been fleecing U.S. retail investors and companies for years, taking advantage of a loophole that only requires them to have a “reasonable expectation” of settling a trade, without actually borrowing the stock. The U.S. September ruling adds further fire to a slower-moving regulatory crackdown in Canada by the OSC and the other regulatory authorities.
The game of capital market destruction is now hopefully coming to an end, and this latest ruling hopefully marks the beginning of the end. There is still a long way to go and this really should be front page news, but the banks are brokers have big marketing budgets so i imagine there will be very little coverage on this important news for investors in North America.
Is This The End Of Naked Short Selling?
Editor OilPrice.com
Mon, Oct 16, 202329 min read
57
In This Article:
TSLA
+0.53%
FSR
+5.19%
GRPN
+4.32%
BYND
+2.42%
BIG
+2.73%
American investors have been taken for a trillion-dollar ride by naked short sellers, in what could turn out to be the biggest financial regulatory scandal in North American history.
While what is now an all-out war on naked short sellers intensifies, there is a new flashpoint on the front line–a potentially devastating ruling targeting those who are alleged to make illegal naked short selling possible: The Facilitators: bankers and brokers.
On September 29, Federal District Court Judge Lorna Schofield of the Southern District of New York issued a ruling that has the potential to significantly disrupt Wall Street compliance, and is a major first step towards protecting retail investors from fraud.
In Harrington Global Opportunity Fund Ltd. v. CIBC World Markets, Inc et.al, Judge Schofield found that broker-dealers may be primarily liable for manipulative trading initiated by their customers because they serve as “gate-keepers” of trading on securities exchanges.
These broker-dealers have a “continuing responsibility to ensure that their customer’s order flow ... is in compliance with all applicable rules, regulations and laws and detect and prevent manipulative or fraudulent trading … under the supervision and control of the firm,” the judge ruled.
The defendants in the case had motioned to dismiss Harrington’s claims of market manipulation and spoofing (when traders place market orders and then cancel them before the order is ever fulfilled, manipulating prices in the meantime). Judge Schofield denied the motion after hearing arguments that broker-dealers are not responsible for “their customers’ trading”.
Instead, the ruling recognizes that not only are broker-dealers the gate-keepers who can enable illegal naked short selling, but they are responsible, and thus liable for their customers’ actions. Schofield described broker-dealers as “reckless in not knowing that the trades being executed at their customers’ direction were manipulative”.
Naked Short Selling: ‘Financial Weapons of Mass Destruction’
Naked shorting creates a dangerous minefield for retail investors. But it’s a minefield that dealer-brokers may now be held liable for thanks to the recent ruling.
Short-selling itself isn’t illegal. In order to legally sell a stock short, traders must first secure a borrow against the shares they intend to sell. Where the September 29 ruling comes into play is at the point of the broker-dealer. Any broker who enters into a stock short on behalf of a trader must have assurances that his client will make a settlement.
As opposed to a “long” sale (where the seller owns the stock), a “short” sale can be either “covered” or “naked”.
If it’s covered, then there is no issue: the short seller has already borrowed or arranged to borrow the shares when the short sale is made.
When things get naked, the regulatory environment becomes riddled with compliance holes. With a naked short, the short seller is selling shares it doesn’t own and has made no arrangements to buy. That means the seller cannot cover or “settle” in this instance. More profoundly, it means they are selling ghost shares that simply do not exist without their further action. The ability to sell an unlimited number of non-existent shares in a publicly-traded company gives a short seller the ultimate power: To destroy and manipulate a company’s share price at will.
This illicit practice artificially dilutes share prices and then companies find themselves in a position where they have to scramble for capital, Bryan Barkley points out in in-depth research published by the Medium.
That scramble then leads to shareholder dilution in more capital raises, in the best cases, and bankruptcy, in the worst cases. If things get to bankruptcy, Barkley writes, then short sellers win big because they no longer need to close out their short positions.
Following the 2008/2009 financial crisis, naked short selling was classified as illegal in the United States, though that labeling has done nothing to thwart this lucrative game.
What makes the September ruling so impactful is this: Without the big banks and financial institutions’ complicity, this highly destructive form of naked short selling could never happen. Instead, they actively facilitate the destruction of shareholder value.
The reason some big banks allow it, despite their sizable compliance departments, appears quite simple: These illegal transactions are highly lucrative. The short-term windfall profits associated with the creation of counterfeit shares are too tempting to resist.
“[...] brokers will place a marker or pledge to deliver the shares on the investors’ accounts, which are made by the seller’s clearing firm”, Barkley explains. “Abusive and unchecked naked shorting can lead to a loss of shareholder rights, including disenfranchisement by overvoting and the resulting throwing out of votes by brokers to conceal the breadth of the naked shorting problem, which could also lead to fraudulent vote results orchestrated by broker-dealers instead of shareholders.”
It often goes well beyond “ghost” shares, too. The most nefarious of short sellers target companies with negative reports–sometimes with legitimate information, and sometimes with falsehoods or half-truths–to drive down share prices with maximum impact, thus ensuring that the companies lose their ability to obtain financing. Once that process is completed, naked shorters then begin to offer those same companies alternative financing (predatory debt), which they have no option but to accept.
When broker-dealers are complicit in this, the system is broken. And complicity takes many forms, including willful booking of client shares as “long” when they are actually “short”.
Gaps in the regulatory environment have continued to fail to subdue these illegal activities.
Keeping the Brokers in Check: A Global Loophole
Even before the 2008/2009 financial crisis, there were measures in place intended to protect retail investors and regulate the activities of brokers with respect to short selling.
The SEC’s Regulation SHO took effect in January 2005 and specifically targeted “persistent failures to deliver and potentially abusive ‘naked’ short selling”. Amendments intended to further strengthen these regulations were added in 2008, and in 2010, the SEC adopted Rule 201, restricting the price at which short sales could be made when a stock was experiencing significant downside pressure.
Additionally, the SEC notes:
Rule 204 requires firms that clear and settle trades to deliver securities to a registered clearing agency for clearance and settlement on a long or short sale in any equity security by the settlement date or to take action to close out failures to deliver by borrowing or purchasing securities of like kind and quantity by no later than the beginning of regular trading hours on the settlement day following the settlement date for short sale fails, or no later than at the beginning of trading hours on the third settlement day following the settlement date for long sale fails, and fails attributable to bona fide market making (“close out date”). If a firm that clears and settles trades has a failure to deliver that is not closed out by the beginning of regular trading hours on the applicable close-out date, the firm has violated Rule 204 and the firm, and any broker-dealer from which it receives trades for clearance and settlement, is subject to the pre-borrow requirement for that security.
However, as Barkley points out, the SEC does not publish FTDs (failures-to-deliver) of U.S.-issued securities traded and settled abroad (including Canada). This means a significant number of FTDs are never accounted for, essentially creating a naked free-for-all.
Last year, UBS Securities LLC conceded to having failed to close out an astounding 5,300 FTDs in the previous decade, yet still kept executing new short sales in the tens of thousands.
“This is naked shorting and FTD abuse on a significant scale, likely involving many billions of dollars,” Barkley writes.
UBS was fined $2.5 million for violating Regulation SHO. Shareholders were left holding the empty bag, though. And likely lost billions of Dollars in the process.
Also last year, Gar Wood Securities LLC was fined for accepting 2,000 short sale orders without the third-party brokers having located the securities they were borrowing against. Gar Wood was fined $100,000 (which is pathetic).
More recently, in August this year, California-based Wedbush Securities Inc. was fined $6 million by the CTFC (Commodity Futures Trading Commission) for failing to “supervise” trades from third-party brokers, and for dubious private communications. Separately, Wedbush was fined another $10 million by the SEC. And thirdly, in relation to failure to close out FTDs, Wedbush was fined a mere $975,000, a sum that appears to be simply the cost of doing business in the naked short arena.
With regard to violations of Regulation 204, a NYSE American LLC waiver notes:
During the Relevant Periods, the Firm failed to timely close out approximately 2,056 FTD positions due to the Firm failing to timely borrow shares, recall shares that were out on loan or otherwise acquire shares and deliver them in accordance with the requirements of Rule 204(a).
During the period between January 1, 2016 through July 31, 2020, on approximately 390 occasions, the Firm further failed to place a security in the penalty box as required by Regulation SHO Rule 204(b) and to send the notice required by Regulation SHO Rule 204(c).
Additionally, in December 2020, Canadian Cormark Securities Inc and two others pinged the SEC’s radar, with the SEC instituting cease-and-desist orders against Cormark and settling charges against Cormark and two other Canada-based broker-deals for “providing incorrect order-making information that caused an executing broker’s repeated violations of Regulation SHO”. According to the SEC, Cormark and ITG Canada caused more than 200 sale orders from a single hedge fund to the tune of more than $660 million (between August 2016 and October 2017) to be mismarked as “long” when they were, in fact, “short”—a clear violation of Regulation SHO. Cormark agreed to pay a penalty of $800,000, while ITG Canada—one of the other broker-dealers charged—agreed to pay a penalty of $200,000.
The Heroes of the Day
The plaintiffs in In Harrington Global Opportunity Fund Ltd. v. CIBC World Markets, Inc et.al, represented by Warshaw Burstein, LLP, have every reason to celebrate.
The judge’s ruling categorically means that going forward, big banks and financial institutions won’t just be fined for not actively closing shorts, they could be held liable for what so far has been an estimated trillion dollars in losses to retail investors, companies and the U.S. government.
“Brokers can no longer claim that they are not liable for their customers’ trading activities because they are only following their directions. A broker can now be held primarily liable under the federal securities laws when they recklessly fail to monitor, detect and prevent the manipulative or fraudulent trading of their customers,” Warshaw Burstein said in a statement following the judge’s September 29 ruling.
“This decision is a clear and unambiguous warning to broker-dealers that unless they fulfill their gate-keeper responsibilities of monitoring their customers’ trading they can be held primarily liable for their client’s manipulative conduct,” the law firm added.
Canada is one venue where this warning should be heeded first and foremost and where naked short sellers have in our view been fleecing U.S. retail investors and companies for years, taking advantage of a loophole that only requires them to have a “reasonable expectation” of settling a trade, without actually borrowing the stock. The U.S. September ruling adds further fire to a slower-moving regulatory crackdown in Canada by the OSC and the other regulatory authorities.
The game of capital market destruction is now hopefully coming to an end, and this latest ruling hopefully marks the beginning of the end. There is still a long way to go and this really should be front page news, but the banks are brokers have big marketing budgets so i imagine there will be very little coverage on this important news for investors in North America.
Is This The End Of Naked Short Selling?
Editor OilPrice.com
Mon, Oct 16, 202329 min read
57
In This Article:
TSLA
+0.53%
FSR
+5.19%
GRPN
+4.32%
BYND
+2.42%
BIG
+2.73%
American investors have been taken for a trillion-dollar ride by naked short sellers, in what could turn out to be the biggest financial regulatory scandal in North American history.
While what is now an all-out war on naked short sellers intensifies, there is a new flashpoint on the front line–a potentially devastating ruling targeting those who are alleged to make illegal naked short selling possible: The Facilitators: bankers and brokers.
On September 29, Federal District Court Judge Lorna Schofield of the Southern District of New York issued a ruling that has the potential to significantly disrupt Wall Street compliance, and is a major first step towards protecting retail investors from fraud.
In Harrington Global Opportunity Fund Ltd. v. CIBC World Markets, Inc et.al, Judge Schofield found that broker-dealers may be primarily liable for manipulative trading initiated by their customers because they serve as “gate-keepers” of trading on securities exchanges.
These broker-dealers have a “continuing responsibility to ensure that their customer’s order flow ... is in compliance with all applicable rules, regulations and laws and detect and prevent manipulative or fraudulent trading … under the supervision and control of the firm,” the judge ruled.
The defendants in the case had motioned to dismiss Harrington’s claims of market manipulation and spoofing (when traders place market orders and then cancel them before the order is ever fulfilled, manipulating prices in the meantime). Judge Schofield denied the motion after hearing arguments that broker-dealers are not responsible for “their customers’ trading”.
Instead, the ruling recognizes that not only are broker-dealers the gate-keepers who can enable illegal naked short selling, but they are responsible, and thus liable for their customers’ actions. Schofield described broker-dealers as “reckless in not knowing that the trades being executed at their customers’ direction were manipulative”.
Naked Short Selling: ‘Financial Weapons of Mass Destruction’
Naked shorting creates a dangerous minefield for retail investors. But it’s a minefield that dealer-brokers may now be held liable for thanks to the recent ruling.
Short-selling itself isn’t illegal. In order to legally sell a stock short, traders must first secure a borrow against the shares they intend to sell. Where the September 29 ruling comes into play is at the point of the broker-dealer. Any broker who enters into a stock short on behalf of a trader must have assurances that his client will make a settlement.
As opposed to a “long” sale (where the seller owns the stock), a “short” sale can be either “covered” or “naked”.
If it’s covered, then there is no issue: the short seller has already borrowed or arranged to borrow the shares when the short sale is made.
When things get naked, the regulatory environment becomes riddled with compliance holes. With a naked short, the short seller is selling shares it doesn’t own and has made no arrangements to buy. That means the seller cannot cover or “settle” in this instance. More profoundly, it means they are selling ghost shares that simply do not exist without their further action. The ability to sell an unlimited number of non-existent shares in a publicly-traded company gives a short seller the ultimate power: To destroy and manipulate a company’s share price at will.
This illicit practice artificially dilutes share prices and then companies find themselves in a position where they have to scramble for capital, Bryan Barkley points out in in-depth research published by the Medium.
That scramble then leads to shareholder dilution in more capital raises, in the best cases, and bankruptcy, in the worst cases. If things get to bankruptcy, Barkley writes, then short sellers win big because they no longer need to close out their short positions.
Following the 2008/2009 financial crisis, naked short selling was classified as illegal in the United States, though that labeling has done nothing to thwart this lucrative game.
What makes the September ruling so impactful is this: Without the big banks and financial institutions’ complicity, this highly destructive form of naked short selling could never happen. Instead, they actively facilitate the destruction of shareholder value.
The reason some big banks allow it, despite their sizable compliance departments, appears quite simple: These illegal transactions are highly lucrative. The short-term windfall profits associated with the creation of counterfeit shares are too tempting to resist.
“[...] brokers will place a marker or pledge to deliver the shares on the investors’ accounts, which are made by the seller’s clearing firm”, Barkley explains. “Abusive and unchecked naked shorting can lead to a loss of shareholder rights, including disenfranchisement by overvoting and the resulting throwing out of votes by brokers to conceal the breadth of the naked shorting problem, which could also lead to fraudulent vote results orchestrated by broker-dealers instead of shareholders.”
It often goes well beyond “ghost” shares, too. The most nefarious of short sellers target companies with negative reports–sometimes with legitimate information, and sometimes with falsehoods or half-truths–to drive down share prices with maximum impact, thus ensuring that the companies lose their ability to obtain financing. Once that process is completed, naked shorters then begin to offer those same companies alternative financing (predatory debt), which they have no option but to accept.
When broker-dealers are complicit in this, the system is broken. And complicity takes many forms, including willful booking of client shares as “long” when they are actually “short”.
Gaps in the regulatory environment have continued to fail to subdue these illegal activities.
Keeping the Brokers in Check: A Global Loophole
Even before the 2008/2009 financial crisis, there were measures in place intended to protect retail investors and regulate the activities of brokers with respect to short selling.
The SEC’s Regulation SHO took effect in January 2005 and specifically targeted “persistent failures to deliver and potentially abusive ‘naked’ short selling”. Amendments intended to further strengthen these regulations were added in 2008, and in 2010, the SEC adopted Rule 201, restricting the price at which short sales could be made when a stock was experiencing significant downside pressure.
Additionally, the SEC notes:
Rule 204 requires firms that clear and settle trades to deliver securities to a registered clearing agency for clearance and settlement on a long or short sale in any equity security by the settlement date or to take action to close out failures to deliver by borrowing or purchasing securities of like kind and quantity by no later than the beginning of regular trading hours on the settlement day following the settlement date for short sale fails, or no later than at the beginning of trading hours on the third settlement day following the settlement date for long sale fails, and fails attributable to bona fide market making (“close out date”). If a firm that clears and settles trades has a failure to deliver that is not closed out by the beginning of regular trading hours on the applicable close-out date, the firm has violated Rule 204 and the firm, and any broker-dealer from which it receives trades for clearance and settlement, is subject to the pre-borrow requirement for that security.
However, as Barkley points out, the SEC does not publish FTDs (failures-to-deliver) of U.S.-issued securities traded and settled abroad (including Canada). This means a significant number of FTDs are never accounted for, essentially creating a naked free-for-all.
Last year, UBS Securities LLC conceded to having failed to close out an astounding 5,300 FTDs in the previous decade, yet still kept executing new short sales in the tens of thousands.
“This is naked shorting and FTD abuse on a significant scale, likely involving many billions of dollars,” Barkley writes.
UBS was fined $2.5 million for violating Regulation SHO. Shareholders were left holding the empty bag, though. And likely lost billions of Dollars in the process.
Also last year, Gar Wood Securities LLC was fined for accepting 2,000 short sale orders without the third-party brokers having located the securities they were borrowing against. Gar Wood was fined $100,000 (which is pathetic).
More recently, in August this year, California-based Wedbush Securities Inc. was fined $6 million by the CTFC (Commodity Futures Trading Commission) for failing to “supervise” trades from third-party brokers, and for dubious private communications. Separately, Wedbush was fined another $10 million by the SEC. And thirdly, in relation to failure to close out FTDs, Wedbush was fined a mere $975,000, a sum that appears to be simply the cost of doing business in the naked short arena.
With regard to violations of Regulation 204, a NYSE American LLC waiver notes:
During the Relevant Periods, the Firm failed to timely close out approximately 2,056 FTD positions due to the Firm failing to timely borrow shares, recall shares that were out on loan or otherwise acquire shares and deliver them in accordance with the requirements of Rule 204(a).
During the period between January 1, 2016 through July 31, 2020, on approximately 390 occasions, the Firm further failed to place a security in the penalty box as required by Regulation SHO Rule 204(b) and to send the notice required by Regulation SHO Rule 204(c).
Additionally, in December 2020, Canadian Cormark Securities Inc and two others pinged the SEC’s radar, with the SEC instituting cease-and-desist orders against Cormark and settling charges against Cormark and two other Canada-based broker-deals for “providing incorrect order-making information that caused an executing broker’s repeated violations of Regulation SHO”. According to the SEC, Cormark and ITG Canada caused more than 200 sale orders from a single hedge fund to the tune of more than $660 million (between August 2016 and October 2017) to be mismarked as “long” when they were, in fact, “short”—a clear violation of Regulation SHO. Cormark agreed to pay a penalty of $800,000, while ITG Canada—one of the other broker-dealers charged—agreed to pay a penalty of $200,000.
The Heroes of the Day
The plaintiffs in In Harrington Global Opportunity Fund Ltd. v. CIBC World Markets, Inc et.al, represented by Warshaw Burstein, LLP, have every reason to celebrate.
The judge’s ruling categorically means that going forward, big banks and financial institutions won’t just be fined for not actively closing shorts, they could be held liable for what so far has been an estimated trillion dollars in losses to retail investors, companies and the U.S. government.
“Brokers can no longer claim that they are not liable for their customers’ trading activities because they are only following their directions. A broker can now be held primarily liable under the federal securities laws when they recklessly fail to monitor, detect and prevent the manipulative or fraudulent trading of their customers,” Warshaw Burstein said in a statement following the judge’s September 29 ruling.
“This decision is a clear and unambiguous warning to broker-dealers that unless they fulfill their gate-keeper responsibilities of monitoring their customers’ trading they can be held primarily liable for their client’s manipulative conduct,” the law firm added.
Canada is one venue where this warning should be heeded first and foremost and where naked short sellers have in our view been fleecing U.S. retail investors and companies for years, taking advantage of a loophole that only requires them to have a “reasonable expectation” of settling a trade, without actually borrowing the stock. The U.S. September ruling adds further fire to a slower-moving regulatory crackdown in Canada by the OSC and the other regulatory authorities.
The game of capital market destruction is now hopefully coming to an end, and this latest ruling hopefully marks the beginning of the end. There is still a long way to go and this really should be front page news, but the banks are brokers have big marketing budgets so i imagine there will be very little coverage on this important news for investors in North America.
DBMM OVER 19 BILLION TRADED 8 YEAR DATA TRADED
$DBMM EACH YEAR TRADE HISTORY
$DBMM 2014 11,773,000,000 11 PLUS BILLION PLEASE READ THAT AGAIN!!!
2014 11,773,000,000. OVER 11 BILLION!!!
2015 1,327,000,000
2016 2,938,000,000
2017 1,980,000,000
2018 205,000,000
2019 429,000,000
2020 202,000,000
2021 194,000,000
$DBMM 8 YEAR GRAND TOTAL 19,048,000,000 yes OVER 19 BILLION TRADED SHARES TRADED
Here is the link simply change the year and add away
https://ih.advfn.com/stock-market/USOTC/digital-brand-media-and-pk-DBMM/historical/more-historical-data?current=3&Date1=01/01/14&Date2=12/30/14
DBMM OVER 19 BILLION TRADED 8 YEAR DATA TRADED
$DBMM EACH YEAR TRADE HISTORY
$DBMM 2014 11,773,000,000 11 PLUS BILLION PLEASE READ THAT AGAIN!!!
2014 11,773,000,000. OVER 11 BILLION!!!
2015 1,327,000,000
2016 2,938,000,000
2017 1,980,000,000
2018 205,000,000
2019 429,000,000
2020 202,000,000
2021 194,000,000
$DBMM 8 YEAR GRAND TOTAL 19,048,000,000 yes OVER 19 BILLION TRADED SHARES TRADED
Here is the link simply change the year and add away
https://ih.advfn.com/stock-market/USOTC/digital-brand-media-and-pk-DBMM/historical/more-historical-data?current=3&Date1=01/01/14&Date2=12/30/14
Bullish
BULLISH
I bet GTSM sells into the bid, I hope I’m wrong of corse…
I voted against
Hoping! That check list is beyond anything I have ever seen
Last week marked the initiation of the official final testing phase for the CorePass ID application. We are pleased to report that, as of now, no significant bugs or malfunctions have been identified within the comprehensive set of tasks meticulously developed by our team.
In today’s update, we will present a compilation of successfully accomplished tasks, accompanied by relevant statistics. We will also update the community on the most recent legal and regulatory advancements that have to do with the French Encryption Declaration that we had previously been asked to provide.
Finally, we will address a selection of frequently asked questions curated by our community moderators over the past few weeks, aiming to provide greater clarity on the pertinent subject matter.
Completed Testing Tasks
Our developers provided us with a rather long list of tasks and features that have been tested over the period of the past week. The testing had previously been halted by the US Data Export Laws that prompted Apple to require more information on the encryption of the application, barring the use of the test version of the app for iOS.
Only after successfully explaining the safety of the user’s data within the application, which has proven to be the pioneer among digital identity applications, could the final company testing resume.
The tasks have been sorted into ten categories, each consisting of dozens of tasks that needed to be performed multiple times. While we will not list the entire record, we will provide you with the most significant ones.
Account Management (50 Subtasks)
Verify that the data recovery option appears when first launching the application ✔
Verify that the 20-character limit works when creating a new account ✔
Verify that the biometrics function as intended ✔
Verify that the button for seed generation works correctly ✔
Verify that the wrong PIN does not get accepted ✔
Verify that an incorrect seed phrase does not get accepted when doing an account recovery ✔
Verify that when uploading an incorrect data backup file, the application won’t accept it ✔
Verify that when recovering the account, the process starts anew when the app is closed during any step of the process ✔
42 other tasks ✔
KYC Verification (57 Subtasks)
Verify that the number of verified/unverified documents is correct ✔
Verify that the summary of the payment is correct ✔
Verify that if you own CTN, it gets displayed as a payment option ✔
Verify that the verified data is readable ✔
Verify that the user cannot continue if the document is unreadable ✔
Verify the pending status of a document before it gets minted ✔
Verify the display message after minting a document ✔
Verify that the information gets displayed when tapping on the minted document ✔
49 other tasks ✔
Contact Information (55 Subtasks)
Verify that you can see the option to add a phone number and email address ✔
Verify that the button “Continue to pay” works as intended ✔
Verify the possibility of choosing the payment option ✔
Verify that the OTP gets sent ✔
Verify that there’s an error message when entering an expired OTP ✔
Verify that the “Back to Dashboard” button works as intended ✔
Verify that the NFT gets deleted after being used ✔
48 other tasks ✔
NFT Vouchers (37 Subtasks)
Verify that the list of NFT Vouchers gets displayed ✔
Verify that you can choose the quantity of the Vouchers ✔
Verify that you can only choose one payment option ✔
Verify that gifting Vouchers works ✔
Verify that when NFT has been created and the digitalization initiated, the NFT cannot be gifted anymore ✔
32 other tasks ✔
Currencies Section and Asset Transfer (65 Subtasks)
Verify that the time frame function works properly ✔
Verify that the clear button works correctly ✔
Verify that the order review function works as intended ✔
Verify that transfers work with both currencies ✔
Verify that you can enter up to four decimal places to transfer assets ✔
Verify that the “max” option works as intended ✔
Verify that each field is editable ✔
Verify that the QR code is scannable ✔
Verify that the manual input is viable ✔
56 other tasks ✔
Purchases (19 Subtasks)
Verify that the Purchases section is displayed correctly in the wallet ✔
Verify that any transaction is clickable ✔
Verify that the transaction detail displays the order ID ✔
Verify that any transaction has a unique hash ✔
Verify that the page can be refreshed when being pulled down ✔
Verify that the reason for an unsuccessful transaction when a connection is lost is specified ✔
13 other tasks ✔
Backup Creation (21 Subtasks)
Verify that account backup is clickable ✔
Verify that auto-backup is available ✔
Verify that both options for backup are available, the device and the cloud ✔
Verify that you have the option to set up the time period for regular backups ✔
17 other tasks ✔
Website Login (14 Subtasks)
Verify that the QR code can be scanned upon choosing the option ✔
Verify that the QR code is unique ✔
Verify that you get a message from the website about a successful login ✔
Verify that if there’s a connection error, an error message gets displayed ✔
10 other tasks ✔
P2P Transfers (59 Subtasks)
Verify that if the request is declined, the transfer is canceled ✔
Verify that an error message is displayed when there’s a connection error ✔
Verify that if the data is correct, the status within the app says “correct” ✔
Verify that an expiration time can be set for the request ✔
Verify that the requester can make several requests at the same time ✔
54 other tasks ✔
Website Transfers (58 Subtasks)
Verify that the requester can correctly check the availability of the required data ✔
Verify that if the data is incorrect, the status within the app says “incorrect” ✔
Verify the inability to change the price after the coin has been locked ✔
Verify that the blockchain sends a request to the requesting party for validation ✔
54 other tasks ✔
Areas to Improve
With our rigorous tests, we can confirm that the majority of tasks have been completed without any major issues being detected. However, there are still minor issues that will require the developers’ attention, although these shall to no extent cause any further delays for the upcoming release.
The few minor areas of continuous improvement involve:
Peer-to-peer connections when transferring data show varying success results, seemingly depending on the device used. We are now collecting the data and repeating the experiments with various phone and connection types, as well as different operators.
The translations of the application sometimes lack the awareness of context, which causes issues with languages with grammatical inflections, such as Slavic languages. This issue shall be addressed in a future update of the application.
Several translations of the buttons are currently being length-appropriated.
Texts are sometimes misaligned.
When writing down the seed phrase, letters do not automatically convert to lowercase.
Google Pixel Fold (Galaxy Z Flip) detected issues with responsiveness and text alignment.
The French Encryption Declaration Status
As detailed in our previous update, CorePass ID has been facing a critical obstacle related to French encryption regulations. In order to distribute the app in France and its affiliated nations, the app must adhere to strict encryption laws outlined by the French government.
The challenge lies in meeting the criteria for encrypted software imported into France. The application must comply with French Encryption Laws and Regulations, which includes providing a copy of an approved French declaration to Apple upon submission to the App Store. The declaration involves intricate details, particularly regarding the use of encryption algorithms.
Our legal team has been occupied with translating the French documentation, comprehending its nuances, and crafting a comprehensive document for submission to the French government.
The documentation has now been crafted and submitted for translation. As soon as we have the official translation back, we will submit it online and, as the government also requires a physical copy of the declaration, send the document via post as well.
Even though the process is now ongoing and well underway, as previously stated, we might be forced to release the application outside of France and its territories until the issue is resolved, should the answer from the French government take longer to arrive than we currently expect as we can only apply with the approval document provided by the French Government.
❓Frequently Asked Questions
Tasked with continuous improvement of the communication with the community, our moderators and community managers have been compiling some of the users’ frequently asked questions for a better understanding of what the application and technology behind the Core Ecosystem and Core Blockchain are all about.
While we cherish the one-on-one interaction with our community members, we find it fitting to address some of these overarching questions on a larger scale, making it easier for information to be shared across a wider audience.
We are selecting the most requested information but will be bringing you more from our database as it updates in the future.
How Does CorePass work in regards to security and data verification?
CorePass has been built on Core Blockchain, which means that it adheres to the ED448 twisted curve security, considered virtually impenetrable. It establishes unique peer-to-peer connections between users. The user is fully in control over their personal data. This means that the only error that might withstand is the human factor, as each individual is directly responsible for their data. The data provided in CorePass gets verified through our verification provider SumSub. CorePass does not store your data, it is stored on the user’s device or their cloud and is solely in their possession.
CorePass also uses the blockchain as a means of verification to ensure the validity of the data. Should any data in CorePass be tampered with or altered, the app will notice the alteration by checking with the blockchain. This truly shows the power, security, and integrity of CorePass as the model is fully transparent and uses an open immutable database, which is the blockchain itself. The fingerprint that CorePass puts into the blockchain for user KYC verification is immutable and if somebody tries to provide fake data using CorePass, as the blockchain is used as the means of verification, the fake data immediately gets recognized and discarded.
What happens if your passport/driving license is renewed?
If the document expires and needs renewal, CorePass will notify the user to verify the newly issued document. If the document is renewed because of external factors, such as a name change or document theft, the user needs to contact the support and ask to have the option to verify their documents renewed.
How can I redeem the CTN tokens once CorePass is launched?
We will publish exact instructions on how to retrieve the Tokens via Ping Exchange in sufficient time. The users will be notified to claim their tokens once they sign into Ping with requirements they must meet to prove their ownership.
Will there be manuals, videos, and/or knowledge base?
Yes, it is currently at work. We are preparing manuals, tutorials, and educational videos for the entire CoDeTech ecosystem. The Ping Exchange website will also contain an educational platform and a blog.
What is the main difference between Core Coin and Core Token?
Core Coin is the native currency of Core Blockchain! The blockchain architecture uses XCB to process all hash transactions and network fees, with an annual supply of 18–22.5M.
Core Token is a utility token, a facilitator, and a verifier in all services supported by the CoDeTech ecosystem, with a limited supply of 1 billion.
Moving On to Ping Testing
The objective of our team is to finish the CorePass ID testing by next week and start the final testing of the Ping Exchange in the process.
We are hoping that the final scrutinizing of the platform will follow the success of the CorePass ID test and that no major issues will be found.
As you can see, the tasks at hand are meticulous and extremely detailed. We would like to thank you once again for your unwavering support as we’re sailing towards the finale.
We will inform you about the next steps and the results of further testing shortly.
📢Read the latest update on the CorePass ID company testing, the current status of the French Declaration, and the answers to the most frequent questions from the community.
https://medium.com/@corepasscc/corepass-id-company-testing-results-french-regulation-status-and-faqs-cf46ef6fac44
https://t.me/codetechcc/922
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