Interesting, and disturbing video Pyrrhonian. I thought they called uncovered options, "naked" in general. This is obviously something very different.
You would think this would be super easy to stop if the SEC wanted to. On the other hand, I know that there are major brokers that still do everything on paper. No internet. Not even computers for trades. Phone calls and paper. And it's legal. So when you scan their records, it takes... days? Months? Years?
So, those types of brokers need to be forced to go to electronic trading. Then there would be a full database / record of all trades, immediately available for analysis. Seems to me. That is, once there is a true intent to fix this. If ever.
Sad stuff. Particularly for anyone stuck with trading as a career. Maybe time to crank up the old PCB design software, or dust off my lino glue trowel.
One worry that I gained watching that bid is whether organizing a maneuver, such as just getting people to put their shares on limit sales, is legal. Probably ok, but not 100% sure.
As for the naked trading making any results from such effort impossible... I am not quite convinced. Maybe. If I understood this better, I might be convinced, but I have the advantage of not quite understanding it all.
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