AMC Stock: The SEC Has Now Violated Threshold Rule (2024)

AMC Stock: The SEC Has Now Violated Threshold Rule (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)

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)

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

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AMC Stock: The SEC Has Now Violated Threshold Rule (4)

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AMC Stock: The SEC Has Now Violated Threshold Rule (6)


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AMC Stock: The SEC Has Now Violated Threshold Rule (2024)


Is AMC stock on the threshold list? ›

AMC Stock Has Been on the Threshold Securities List Since June 23 | InvestorPlace.

What happens if a stock is on the threshold list for 13 days? ›

A participant of a registered clearing agency that has a fail to deliver position at a registered clearing agency in a Threshold Security for 13 consecutive settlement days must immediately close out that fail to deliver position by purchasing shares of like kind and quantity as stipulated in Regulation SHO Rule 203(b ...

What is SEC regulation threshold? ›

A threshold list, also known as a Regulation SHO Threshold Security List, is a list of securities whose transactions failed to clear for five consecutive settlement days at a registered clearing agency. Threshold lists are published in accordance with regulations set by the Securities and Exchange Commission (SEC).

What happens to stocks on threshold list? ›

A list of securities with transactions that failed to settle for five straight settlement days is known as a threshold list. Following SEC standards, several exchanges provide threshold lists. Failures to settle may be a sign of improper naked short selling. Administrative mistakes also bring on settlement failures.

What stocks are on the threshold list? ›

Threshold Securities
SymbolSecurity NameTrade Date
APRTAllianzIM U.S. Large Cap Buffer10 Apr ETF2024-06-05
BNEDBarnes & Noble Education, Inc2024-06-05
BQBoqii Holding Limited American Depositary Shares (each representing fifteen (15) Class A Ordinary Shares)2024-06-05
EETHProShares Ether Strategy ETF2024-06-05
6 more rows

What does threshold mean in stocks? ›

Threshold securities are equity securities that have an aggregate fail to deliver position for: Five consecutive settlement days at a registered clearing agency (e.g., National Securities Clearing Corporation (NSCC));

Is a short squeeze illegal? ›

Although short squeezes may occur naturally in the stock market the U.S. Securities and Exchange Commission (SEC) states that abusing short sale practices is illegal. In addition, short sales used to manipulate the price of a stock are prohibited.

What is the SEC short rule? ›

The short-sale rule was a Securities and Exchange Commission (SEC) trading regulation that restricted short sales of stock from being placed on a downtick in the market price of the shares. A downtick is a transaction on an exchange that occurs at a price below the previous transaction.

What is the SEC rule? ›

SEC regulations are a set of rules and guidelines that govern the securities industry. These rules protect investors and promote fair and orderly markets.

What is the SEC shareholder limit? ›

The 2,000 investor limit is an SEC rule requiring that a company file financial reports if it exceeds 2,000 individual investors and $10 million in assets. The 3(c)(7) exemption is part of the Investment Company Act of 1940 and allows private funds to sidestep some SEC regulations.

What does SEC restricted mean? ›

SEC Rule 144 covers restricted securities. Restricted securities are typically sold in a private placement and cannot be freely traded on stock exchanges. These shares are subject to resale and transfer restrictions which may include filing a registration statement with the SEC.

Should I hold or sell AMC stock? ›

Based on analyst ratings, AMC Entertainment's 12-month average price target is $4.68. Currently there's no upside potential for AMC, based on the analysts' average price target. AMC Entertainment has a consensus rating of Moderate Sell which is based on 0 buy ratings, 4 hold ratings and 3 sell ratings.

What is excluded from a list in AMC? ›

See movies in any format, including Dolby Cinema, IMAX® and RealD® 3D for no additional charge! Premium events such as fan events, Fathom events, marathons, Dreamscape at AMC adventures, select concert or other specialty films, and Metropolitan Opera events are excluded.

Why are AMC shares so low? ›

AMC sank 20% after the beleaguered movie theater chain took advantage of its equity rally through a private deal to reduce its debt. The stocks had more than doubled over the first two days of the week, before the Wednesday slide erased roughly $3 billion in market value between the two.

What is the threshold price of a stock? ›

Threshold Price Live Data

The live Threshold price today is $0.034638 USD with a 24-hour trading volume of $7,044,619 USD. We update our T to USD price in real-time. Threshold is down 4.40% in the last 24 hours. The current CoinMarketCap ranking is #200, with a live market cap of $336,464,293 USD.

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