Replies to post #156974 on On4 Communications Inc (ONCI)

[Crazy Money]

No shorts to squeeze nor keeping it down... ;-)

Time for a GREEN WEEK... or zzz :-D

wow dis board is a mess...

adding to da mess :-)

weee

[wrenchman]

Seriously you are Trying to make a statement for every MM and or shorter?Cmon now that for sure is OPINION as this article proves that pennies are known targets for manipulation wouldn't u say?

There are tons of cases similar to this one that I can supply if needed?

FACT REG SHO ONLY WORKS IF THE MM FOLLOWS THE RULES!

https://www.google.com/amp/s/static.theintercept.com/amp/whistleblower-vindicated-massive-trading-firm-knight-capital-charged-with-abusing-naked-shorts.html

But with a naked short sale, the trader doesn’t even borrow the stock. This creates artificial shares in a security, increasing supply and crippling the sale price.

Naked short selling is only legal for market makers like KCG, so that if there’s high demand for a stock, a market maker can fill orders even if they don’t have the shares immediately available. DiIorio, who began to investigate this after a penny stock he purchased was wiped out in 2006, concluded that KCG doesn’t engage in naked shorting to facilitate markets, but rather to make money for themselves by battering penny stocks.

Naked shorts cannot stay naked forever. SEC rules dictate that naked short sellers must eventually deliver shares to the buyer and close out the trade. Not doing so results in a “fail to deliver,” the securities version of an IOU. Under Regulation SHO, short sellers have to cough up the stock within one day of incurring the fail.

Finra staff reviewed four separate time periods from 2012 to 2015, spot-checking for errors. Most of the problems were found between June and July 2013, when Finra found 3,477 separate instances of KCG engaging in “a short sale for its own account without first borrowing the security,” a description of naked short selling, “while it had a fail-to-deliver position… that had not been closed out.” According to a footnote, these naked shorts were done “to facilitate a customer(s) long sale order on a riskless principal basis.”

This matches DiIorio’s explanations. “This is how KCG generates trading profits in penny stocks,” he said. “There is no such thing as riskless principal basis unless you’re doing something illegal.”

The customers facilitating KCG’s short sales by buying the stock long, DiIorio claimed, are typically high net-worth individuals operating through Swiss banks, using the trading activity as part of a scheme to launder money and evade taxes.