Replies to post #1390 on The Real DTCC Discussion

[BigBake1]

I am really glad you brought that up, that ticker is truly a gem when it comes to trade reporting. You can actually see Short Interest to the degree of when the position was borrowed and when it was covered all within the FTD reports:

Short Interest for TEVE

http://www.otcmarkets.com/stock/TEVE/short-sales

We can see 44 shares were shorted in the Bi Monthly Short Interest report and guess what we can see it in the FTD report also:

 20130827	87970K207	TEVE	44	TELVUE CORP COM STK	20.00 
 20130828	87970K207	TEVE	44	TELVUE CORP COM STK	20.00 
 20130829	87970K207	TEVE	44	TELVUE CORP COM STK	20.00 
 20130830	87970K207	TEVE	44	TELVUE CORP COM STK	15.25 
 20130903	87970K207	TEVE	44	TELVUE CORP COM STK	15.25

This is truly spectacular, rarely is there short position taken in such an illiquid security. Because this security trades rarely the spreads are often ridiculously awful one can clearly see the entire short position from inception to close out. On August 21st someone borrowed 44 shares, and because there was an open position with no delivery of shares it became an FTD on August 27th, 2013, after not meeting the T+3 requirements. You can see that the trade was settled on the 4th of September, 2013 when the FTD data recorded a 0 aggregate on that date.

In this case the trader made $209 before fees and interest. But someone wasn't so lucky in 2012. If you will note Short Interest of 120 shares was recorded on September 28th, 2012.. well looky here the FTD data shows the same thing:

 20120926	87970K207	TEVE	120	TELVUE CORP COM STK	4.15 
 20120927	87970K207	TEVE	120	TELVUE CORP COM STK	4.15 
 20120928	87970K207	TEVE	120	TELVUE CORP COM STK	10.10 
 20121001	87970K207	TEVE	120	TELVUE CORP COM STK	10.10

In this case someone lost $714. Rarely do you ever get to see Short Interest so clearly in the FTD data leaving you to the exact reason you see on the SEC FTD page about determining the exact cause:

Please note that fails-to-deliver can occur for a number of reasons on both long and short sales. Therefore, fails-to-deliver are not necessarily the result of short selling, and are not evidence of abusive short selling or “naked” short selling. For more information on short selling and fails-to-deliver, see http://www.sec.gov/spotlight/keyregshoissues.htm, http://www.sec.gov/divisions/marketreg/mrfaqregsho1204.htm, and http://www.sec.gov/rules/final/34-50103.htm.

Here in the case of TEVE you can attribute some of the FTD data to an exact cause because of the correlating Short Interest data provided. I can actually say this is perfect educational piece for those trying to see how everything gets reported and recorded.

Edit, you will not find the 44 share trade in the consolidated tape, remember the ODD LOT reporting did not start until 2014.