![AMC Stock: The SEC Has Now Violated Threshold Rule (1) AMC Stock: The SEC Has Now Violated Threshold Rule (1)](https://i0.wp.com/i0.wp.com/franknez.com/wp-content/uploads/2023/08/AMC-Stock-The-SEC-Has-Now-Violated-Threshold-Rule.jpg?resize=676%2C378&ssl=1)
The SEC has now violated the 13-day Threshold Securities List rule for AMC Entertainment (NYSE:AMC) which states that a broker-dealer must immediately close out all fail-to-deliver positions by purchasing shares in the open market.
As of Friday, September 1st, AMC has now been on the threshold list for 50 consecutive days and pricing has not reflected indication of strong purchasing in the past weeks.
“Sometimes there arefails to deliver, and a fail to deliver is when you don’t have the ability to prove that you borrowed the stocklegallybefore you actually shorted it”, said Yahoo’s Senior Markets and Data Reporter Jared Blikre.
He says a company joining the NYSE Threshold Securities List is a clear indication of manipulation in the market, primarily through ‘naked short selling’, which Wes Christian says is a worldwide problem.
AMC EntertainmentFTDs surged big in the end of June according to the latest report byStocksera.
By June 30th, the number offails-to-deliverthat day surpassed more than 12.9 million, equivalent to more than $57 million.
In April, AMC hitall-time highswhen FTDs soared between 17 million and 18 million, equaling $85.4 million (non-cumulative).
And in July, FTDs saw as much as $60 million, or 14.1 million FTDs in one single day.
![AMC Stock: The SEC Has Now Violated Threshold Rule (2) AMC Stock: The SEC Has Now Violated Threshold Rule (2)](https://i0.wp.com/i0.wp.com/franknez.com/wp-content/uploads/2023/08/AMC-FTDS-July-2023.png?resize=676%2C340&ssl=1)
FTDs, or Failure-to-deliver occurs when one party in a trading contract (whether it’s shares, futures, or options) fails to deliver on their obligations.
These failures derive due to buyers not having enough money to take delivery and pay for the transaction at settlement.
In the case of sellers, it means not having the goods to meet that transaction.
Failure-to-delivers can occur in options trading or when selling short naked, perInvestopedia.
Related: Will APE Now Trigger an AMC Short Squeeze Soon?
Is Anything Being Done About AMC’s High FTD Rate?
![AMC Stock: The SEC Has Now Violated Threshold Rule (3) AMC Stock: The SEC Has Now Violated Threshold Rule (3)](https://i0.wp.com/i0.wp.com/franknez.com/wp-content/uploads/2023/07/AMC-Entertainments-Short-Score-is-Now-at-95.jpg?resize=676%2C380&ssl=1)
In April, AMC CEO Adam Aron announced that the company had contacted both FINRA and the NYSE to look closely at the trading of their stock primarily due to the high number of FTDs.
“Many of you, and we, are aware that AMC Entertainment has been on ‘The Threshold List‘ for 3+ weeks, indicating a number of FTDs.
Some of you may be pleased to learn that we have contacted both FINRA and the NYSE asking that they both look closely at the trading of our stock.”
In August, the CEO released the following update:
“Many of you are incensed by the high number of “Fail to Deliver” AMC shares, and that AMC again has been on the Threshold List for multiple weeks. We repeatedlyhave gone to the NYSE and FINRA, and did so again in July, to put and keep this entire situation on their radar,” said the CEO on FTDs this month.
Please continue to keep everyone updated 🍿
— Frank Nez 🇺🇸 (@FNez_Blogger) August 2, 2023
The high reportings of FTDs in AMC Entertainment stock suggest an unnatural occurrence of events that all point towards some sort of discrepancy, manipulation or not.
The CEO has said in the past that he has not seen any signs of synthetic shares, with reason too since AMC’s lenders, who are also short on the stock, have complicated binding agreements with the CEO.
In the meantime, we’re seeing companies such as Hycroft Mining, Mullen Automotive, Genius Group, and Meta Materials investigating what they believe to be an attack on their company stock via naked short selling.
Some investors wonder if AMC Entertainment is already investigating these possibilities behind-the-scenes.
But I’m curious to know what you think. Leave your thoughts in the comment section of the blog down below. Share this article to raise awareness.
Poll: Do you support Adam Aron? $AMC
— Frank Nez 🇺🇸 (@FNez_Blogger) July 21, 2023
Also Read: Wedbush Now Upgrades AMC From Underperform to Neutral
Market News Published Daily 📰
![AMC Stock: The SEC Has Now Violated Threshold Rule (4) AMC Stock: The SEC Has Now Violated Threshold Rule (4)](https://i0.wp.com/i0.wp.com/franknez.com/wp-content/uploads/2023/02/Market-News-FrankNez.jpg?resize=676%2C380&ssl=1)
Join the newsletter⬅️ to receive daily stock market news, business news and updates straight to your inbox; more than 10,000 readers have joined!
THANK YOU to all of our blog sponsors, this year we’ve been able to increase our email sends and signup slots as well as introduce push notifications.
Franknez.com is the media site that keeps retail investors informed.
You can also follow Frank Nez onTwitter,Instagram,Facebook, orLinkedInfor daily news and updates on your favorite stories.
More Market News 📰
![AMC Stock: The SEC Has Now Violated Threshold Rule (5) AMC Stock: The SEC Has Now Violated Threshold Rule (5)](https://i0.wp.com/i0.wp.com/franknez.com/wp-content/uploads/2023/03/cropped-Frank-Nez-Market-News-Icon-3.png?resize=78%2C78&ssl=1)
Become a Sponsor for only $1/mo.
- Gain access toEXCLUSIVE FrankNez articlesyou won’t find here.
- Become part of aprivate and safeDiscord community, just for retail investors.
- Get drawn at the end of the year for holiday giveaways.
Recommended For You ✨
- The US Treasury Direct is Now Freezing Customer Accounts
- Wells Fargo is Now Freezing Bank Accounts in New Scandal
- SNAP Benefits Will Now Increase For The Year 2024
- California Now Has Massive Departures As Hundreds of Thousands Leave
- Florida Now Has Massive Departures As Hundreds of Thousands Leave
- A US Bank is Now Denying Customers Access to Money
Trending
A Company Now Announces Massive Layoffs in Texas and California