The SEC What's Next?
SEC really playing hardball now
It took the states to bring this down. It'll probably take the states to stop FTDs and FTRs. The NASAA is interested in acting alongside NIPC in legal action (as opposed to legislative action). Our research has revealed the most promising ways to do this. In short,
1. States have jurisdictions that the SEC does not - which can be used as enforcement tools and
2. States can enforce those federal laws which have a twin cousin in state law - which is the case in several states.
We're holding back right now to see if the SEC will remove the market maker exemption and extend the emergency order, requiring the settlement date delivery requirement for all securities - or not. We will act according to what the SEC does. Best case is they announce they will be enforcing 15c6-1 and 15c3-3 in all cases. They don't even need to propose any new rules, they already exists.
I an only encourage everyone to demand the release of FTR data ("fails to receive") by the SEC, as without FTRs, FTDs are of no use. FTDs are the pulling forces, but the FTRs are the straws placed directly in investor accounts that withdraw funds. Money for FTRs, rather than for the contracted for securities anyone? Like the Nigerian wanna be marker maker, I too would like to do that - a great gig if you have no scruples.
Phantom securities are FTRs, which are exchanged for investor money. FTDs do not pull any money out of the market from investors, FTRs do. We need to know all about the FTRs. Where, who, how many, how long, etc....this is the smoking gun and if stopped, that will automatically render FTDs useless. |
