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Wednesday, 02/28/2024 3:23:01 PM

Wednesday, February 28, 2024 3:23:01 PM

Post# of 122666
Refer to the truth and quit talking nonsense!...from the source:

https://blog.otcmarkets.com/2023/05/08/what-investors-should-know-about-finra-daily-short-sale-volume-data/

If a market maker is representing an investor’s long sell order in their displayed quote (otherwise known as Limit Order Display), the public media report trade will show up as a short sale, and the long sale will be a regulatory non-media report. In the above situations, trades initiated by a natural buyer or a long seller, the media trade reports will be marked as short sales. This further creates confusion about short activity in the market.



In some cases, a market maker receives customer sell orders and is unable to or decides not to principally fill the customer order. The market maker effectively becomes an order router seeking to obtain the best liquidity for its customer. As the market maker interacts with bids in the market to fill the order, the trades are automatically allocated to outstanding customer sell orders that are executable at those prices.

FINRA Rule 5320, known as the Manning obligation, requires that market makers immediately fill all live marketable customer orders at the same or better price, before allocating trades to a market maker’s own account. Depending on the market maker’s position in that moment, sell orders may be reported as “media” short sales to the public when the regulatory non-media trade report is a regular long sale.



As the above examples demonstrate, FINRA Short Sale Daily Volume File conflates directional investors (who have a true intent to sell short) with market maker short selling activity (who incur temporary short positions in order to provide liquidity to buyers) into one confusing number. This method of publication causes the aggregate volume to appear to reflect a higher concentration of directional short sale activity than is occurring.



Professionals understand that separating actual customer short sales and calculating a separate net change in market maker positions at the end of the trading day would provide a better metric for investors and regulators in determining actual short sale activity in a trading day. Unfortunately, this important information cannot be ascertained from the current FINRA Short Sale Daily Volume File.



Please understand what you are looking at...it will enable you to perform better.
Volume:
Day Range:
Bid:
Ask:
Last Trade Time:
Total Trades:
  • 1D
  • 1M
  • 3M
  • 6M
  • 1Y
  • 5Y
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