Is my money, is my right to buy 300.000.000 shares from 0.0001 !
Brokers just need add two factor authentication, maybe a physical device, to remove their liability
NBBO
Stock XYV
Arca ECn bid 1, Ask 2
EDGX Ecn, bid 0.99, Ask 3
NITE bid 0.00001, Ask 4000
NBBO - 1 and 2
You broker cant sell the stock for less than 1 and cant buy for more than 2. Generally ECN are also subject to NBBO
more than 4000 stocks will be banned. Most pink sheets are no information.
market makers will lose a lot of money as it will be impossible to close their positions with order flow dump money
Order flow is very bad.
Bid 19. Ask 20. If i send a order to buy 100 stocks for 20 (otc markets) first ameritrade will send the order to NITE, CEDEL or ETRF. Which can take several minutes
not, from my experience with OTC markets executions with tdameritrade are not instantaneous and sometimes they don't report (or report with delay because market makers like NITE or CEDEL are similar to dark pools)
Stock XYZ - 1 million authorized stocks. But accidentally market maker naked short sell 10 millions stocks. It is impossible to cover this position
1) Will the people who bought the shares lose them ?
2) Or, phantom shares continue to be traded ?
executions are slow because first the broker send your order for market makers like NITE or CITADEL securities. And it can take several minutes to complete the order even when it's inside the bid ask.
Market makers can do naked short sells (and have up to 90 days to close their positions)
If a market maker sold more shares than the number of authorized shares