$Faraday Future Intelligent Electric Inc. (FFIE.US)$ This te...
$Faraday Future Intelligent Electric Inc. (FFIE.US)$ This text is very long and complex, and mainly discusses issues such as bare selling, failure to deliver (FTD), and the T+35 rule. I'll simplify the translation to Chinese:
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**Basic description of bare selling, undeliverable (FTD) and T+35 rules**
**Introduction**
DTCC aims to use paperless and electronic systems to improve efficiency, but the closed-loop system makes it possible to manipulate markets such as bare selling and shorting.
**Regulation SHO**
Reg SHO is designed to handle naked short selling in an electronic clearing environment, but there are many loopholes, and the SEC doesn't seem to care much about this.
**Naked short selling positioning**
Market makers can short sell naked without targeting stocks, which is permitted under Reg SHO regulations.
**Undeliverable (FTD) **
Failure to locate bare shorted stocks within two days prior to settlement will result in FTD. Market makers can keep it up to 6 days longer.
**Rule loopholes and manipulation**
The SEC's rules are vague and easy to interpret and manipulate, particularly the 203 (a) and “reasonable cause” definitions and the management of location lists.
**DTCC's Stock Lending Plan**
Stock lending programs can be used to conceal naked short sales, but there are abuse loopholes.
**Stock Market Clearing System and NSCC**
NSCC's continuous net settlement system allows the creation of synthetic stocks, and market makers and hedge funds can take advantage of these loopholes.
**Summary**
The complexity of bare shorting, FTD, and T+35 rules reflect the manipulation and regulatory challenges of modern stock markets.
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