Flip Naked Short selling is illegal period. It is not: "loopholes and enforcement challenges can allow naked short selling to persist". It is failure to enforce. This is what AI says about new regulations and promises of enforcement after MMs got screwed with Gamestop --> "In response to the 2021 GameStop trading frenzy, the U.S. Securities and Exchange Commission (SEC) has proposed and implemented new rules to prevent similar events:
Regulation SHO: This rule prevents short-selling abuses, such as naked short selling, which is the illegal practice of shorting a stock without first borrowing shares.
Shortened settlement cycle: The SEC shortened the time between when a securities order is placed and when a trade concludes from two business days to one. This rule is intended to reduce the "systemic risk" that occurred during the GameStop trading frenzy.
Proposed stricter disclosure rules: The SEC is considering stricter disclosure rules for short positions.
Other actions taken in response to the GameStop trading frenzy include:
Brokers like Robinhood and Interactive Brokers restricted trading in GameStop.
Brokers raised margin requirements for certain securities.
The GameStop trading frenzy occurred when retail investors took long positions in GameStop stock, causing the price to skyrocket. This left institutional investors scrambling to cover short positions, resulting in market volatility." Did any of this get enforced? Little if any. I have zero hope all these new regulations will make any difference at all because the SEC is in the MMs pocket and does nothing to these Big Money Rat Bastards. That's my 2 cents.
Bullish