Security First International Holdings, Inc (OTC:SCFR) Begins to Investgate “Naked Short Selling” and “Fail To Deliver” (FTD) in the Companies Trading Float
FT. LAUDERDALE, FL / ACCESSWIRE / April 25, 2023 / Security First International Holdings, Inc today announced they have begun a deep dive into trading anomalies of the companies trading float. The company believes that there have been occurrences of naked short selling and a significant fail to deliver by a number of brokerage firms and broker-dealers.
Naked shorting is the illegal practice of short selling shares that have not been affirmatively determined to exist. Ordinarily, traders must borrow a stock or determine that it can be borrowed before they sell it short. So naked shorting refers to short pressure on a stock that may be larger than the tradable shares in the market.
Despite being made illegal after the 2008-09 financial crisis, naked shorting continues to happen because of loopholes in rules and discrepancies between paper and electronic trading systems.
Security First International Holdings Inc is a “non-dtc” company, meaning that brokerage firms and broker-dealers are required to hold paper certificates in custody on behalf of their client. It has come to the company’s attention that not all firms hold an adequate amount shares for their clients. With firms not being in balance could result in a fail to deliver or create a run-away float with phantom shares.
A fail to deliver (FTD) occurs when the seller (the party with a short position) does not own all or any of the underlying assets required at settlement, and so cannot make the delivery.
The company believes there is a large concentration of phantom shares being held by brokerage firms on behalf of their clients without the underlying asset being held in custody.
Custody services provided by a brokerage firm typically include the settlement, safekeeping, and reporting of clients’ marketable securities. With a number of tier one brokerage firms not acquiring the underlying assets this has created an oversold market preventing true market execution.
The company plans to keep shareholders updated on the findings.
About Security First International Holdings, Inc.
Security First International Holdings, Inc. is a technology incubator for early-stage web and mobile projects.
Contact
Security First International Holdings, Inc.
info@scfrholdings.com
(954) 546-1501
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SOURCE: Security First International Holdings, Inc.
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