Failure to deliver data is retrieved from the SEC and released to the public to see shortly after.
The previous (FTD) data shows that AMC has reached a shocking number of fails to deliver, hitting 1,327,129 fails to deliver — which is also known as trades that never settle.
This is significantly higher than most all stocks across the entire stock market, which makes it quite obvious that something nefarious could be taking place here.
Failure to deliver occurs when a buyer or a seller is unable to pay their trading commitments on or before the settlement date. When a continuous pattern of high failure to deliver is present, it can indicate that illegal trading practices are going on such as naked short selling.
In the image above you can see that AMC Stock’s Failure to deliver have been at an elevated level for as long as you can go back. This could be partially due to naked shorting.
Fails to deliver as of 5/13/22 came in at 298,330 which is once again one of the highest numbers that have been released in the last year, 4/19/22 being extremely high at almost 1.1 million…
AMC retail investors or the Apes have strongly suspected hedge funds of illegally naked short selling the meme stock for a while now. This has gone on for quite a long time and the data clearly proves it. If hedge funds are in fact illegally naked short selling the stock this can partially explain why the AMC stock price has been driven down. AMC stock has been shorted a lot lately, with a current short interest of around 24%.
HOW LONG CAN AMC FAIL TO DELIVER?
Eventually if a stock has persistently failed to deliver over a long period of time, the DTCC (Depository Trust & Clearing Corporation) puts the trade in an “obligations warehouse” — where it essentially just disappears. Unfortunately, the DTCC is owned by its users, and its users are primarily hedge funds — which as we know seems like it could be yet another conflict of interest. If the DTCC simply removes these unsettled trades and makes them disappear, what would stop hedge funds from continuing to do it again?
As always, AMC retail investors continue to buy and hold their AMC positions. The best way retail investors can help fight the injustices with the hedge funds is by spreading the word about the hedge funds and the possibility of illegal trading activity and buying and holding the stock. Apes believe it’s always a good time to buy AMC because the movement is only getting larger and stronger.
Since AMC Stock still has elevated Failure to Delivers the retail investor are pleading for this to be looked into by the SEC or other authorities.