Why is this? FINRA must be more tightly scrutinizing forms 211 submitted by market makers to add delisted stocks to OTC trading. I talked to multiple MMs and couldn't get a clear answer. www.finra.org/filing-repor... - ThreadSky

goodetrades.com • 20 days ago

Why is this? FINRA must be more tightly scrutinizing forms 211 submitted by market makers to add delisted stocks to OTC trading. I talked to multiple MMs and couldn't get a clear answer.

https://www.finra.org/filing-reporting/over-the-counter-reporting-facility-orf/form-211

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goodetrades.com•20 days ago

The upcoming gutting of SEC at the hands of Musk is unlikely to affect this but within a year or two I expect FINRA to lose most of its powers (possibly as the supreme court rules for Alpine Securities in its suit against FINRA) and this may end.

goodetrades.com•20 days ago

Also add #$WRNT from August 6th, 2024 and #$AIU, both of which were ADRs

frontiere.bsky.social•20 days ago

Hi Michael, what’s the actual trade here for you? Are you shorting stocks into the ground and so need to know how to cover? Or are you buying off the delisting selloff?

This is not my area at all, so just curious what’s the alpha. I do trade the assymetric tails in biotech though.

goodetrades.com•19 days ago

Mainly a warning about risks to shorts. I ended up stuck short #$PIXY (anticipating BK) paying 1000% APR borrow cost for weeks before the rate was reduced (and eventually went to zero). I'm still short. #$HYZN didn't delist as expected and spiked because of that; then halted unexpectedly midday.

jpetejr.bsky.social•20 days ago

Good post. I was trapped in $HYZN and since accepted my money is gone. Was busy at work and didn’t have a chance to sell. Only trade what you can afford to lose in this market these days.

goodetrades.com•20 days ago

I know a couple guys who were trapped short HYZN. They ended up buying shares off longs to close out the short and stop paying borrow. There was warning in that the company 8-K had said it would be suspended that day. Someone messed up at NASDAQ and it traded for a couple hours before halting.

jpetejr.bsky.social•19 days ago

I have no idea how that would work. Buying shares from longs while it’s suspended and using them to cover. Seems impossible

goodetrades.com•19 days ago

You do either a Free of Payment (FOP) transfer of shares (which is only allowed by a few brokers such as Etrade and Fidelity to people other than yourself) and do private payment (Venmo, wire, cashier's check, whatever) or you can do direct registration with transfer agent and transfer that way

goodetrades.com•19 days ago

As long as the shares are not frozen at DTCC or in some legal halt (e.g., #$ERUS or other Russian securities) they can be transferred. Working out escrow or a contract is just a simple if annoying matter.

jpetejr.bsky.social•14 days ago

Thanks for info though

jpetejr.bsky.social•14 days ago

Ibkr liquidated my shares

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