Hier ein weiterer Auszug:
Here are the mechanics behind how this is working right now:
1.) HFs shorting- Hedge Funds are shorting to keep the price from increasing. Aided by the MMs favorable short borrow free rate, the regulator's leniency (turning a blind eye), and also the lack of margin calls from MMs
2.) Market Makers Controlling Order Flow- MMs are currently working to keep the price in stasis while the regulations settle in place. They can do this by controlling where orders they receive are executed. The mechanism they use for that is dark pool trading. If an MM wants to keep the price down, they route buy orders through the dark pool. If they want to keep price up or let it run briefly, they move sell orders to the dark pool. All is meant to keep stasis.
3.) Regulators- The NSCC and DTCC regulators want to make sure that all of their members don't suffer huge losses to cover one member's large mistake. OTCC wants to be able to control how the liquidation of the over-leveraged HFs to ensure their holdings can be re-apportioned in a way that doesn't crash the economy. The SEC wants all of this to go away without federal investigations, litigation, and, quite frankly, jail time.
Regulators are the puppet-masters. They are directing the MMs and HFs on how to keep the SP stable. They are ensuring that they get the time they need to enact rules and regulations before this squeeze can shatter global markets. MMs are the Regulators muscle and deep pockets. They are providing the liquidity, order flow, and manipulation that keeps the price stable while the regulators get their ducks in a row. HFs are the court jesters and servants. The hole they've dug is so deep, they have zero power in how or when this squeeze happens. In order to even survive this, they must follow direction of the Regulators and MMs to avoid going out of business, facing litigation, and serving jail time. They are serving as court jesters by keeping the public distracted from the king standing behind them. We all vilify the HFS (rightfully so), and completely ignore what is going on behind the scenes (at least until atobitt brought this all together).
ALL THAT MATTERS RIGHT NOW IS FOR THE RULINGS AND REGULATIONS TO BE PUT IN EFFECT. WHEN THEY ARE, THE REGULATORY AGENCIES CAN ALLOW ANY HEAVILY SHORTED STOCK TO SQUEEZE. IF THESE WERE TO SQUEEZE WITHOUT THE REGULATIONS IN PLACE, THE HFS GO DOWN, THE MMS FOLLOW, AND THE REGULATORS DROP LAST. NOT SAYING THIS CAN'T SQUEEZE BEFORE THE RULES HIT THE BOOKS, BUT I GUARANTEE NONE OF THE ACTING PARTIES HERE, EXCEPT MAYBE THE HFS, WANT THAT TO HAPPEN.
So, what are the regulations that need to be in place before they open the flood gates? How do they all go hand-in-hand to provide regulatory control over the squeeze? |
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