Failed Trades / Failure to deliver equities
Dear European Securities and Markets Authority,
Under the right of access to documents in the EU treaties, as developed in Regulation 1049/2001, I am requesting documents which contain the following information:
Re: [Failed Trades / Failure to delivers ]
Could I please request a copy/access to data provided to you by any Clearing and Depository Service and or Broker-dealer as it pertains to failed trades of the US securities listed below that were bought by EU nationals, foreign nationals & companies using EU member state or EEA based brokers or corporations - from January 1, 2021 to present day ( September, 20, 2022) for the trade tickers AMC (AMC Entertainment Holdings Inc, NYSE,(cusip: 0001411579)), APE (AMC Entertainment Hldg Pref Equity Units Depositary Share Rep 1 100th Int Convertible Prf Shs Series A
NYSE: APEcusip : 00165C203)) & GME ( GameStop Corp.
NYSE: GME (cusip : 36467W109) ) .
Daily , monthly, yearly breakdown would be appreciated. I do not require personal information, only the the information as to how many fails there has been & continues to be for each ticker.
I'd be very grateful for the informantion.
Please email me the information.
Yours faithfully,
Bryan
Dear Bryan James,
We acknowledge receipt of your request and will get back to you in due course.
Kind regards
Enrico Gagliardi
Dear Bryan James,
We would like to refer to the request you sent to ESMA on 22 September
2022 relating to "[Failed Trades / Failure to delivers ]".
In particular you requested the following: "[...] a copy/access to data
provided to you by any Clearing and Depository Service and or
Broker-dealer as it pertains to failed trades of the US securities listed
below that were bought by EU nationals, foreign nationals & companies
using EU member state or EEA based brokers or corporations - from January
1, 2021 to present day ( September, 20, 2022) for the trade tickers AMC
(AMC Entertainment Holdings Inc, NYSE,(cusip: 0001411579)), APE (AMC
Entertainment Hldg Pref Equity Units Depositary Share Rep 1 100th Int
Convertible Prf Shs Series A
NYSE: APEcusip : 00165C203)) & GME ( GameStop Corp.
NYSE: GME (cusip : 36467W109) ) .
Daily , monthly, yearly breakdown would be appreciated. I do not require
personal information, only the information as to how many fails there has
been & continues to be for each ticker.".
Against this background, please note that ESMA does not hold this level of
data granularity (ISIN based) from the reports it receives pursuant to
Regulation (EU) No 909/2014.
Consequently, ESMA does not possess the requested information.
We trust this response addresses your request in full.
With kind regards
Enrico Gagliardi
Dear Enrico Gagliardi,
If I may, could I follow up with this request, after some thought I have some questions.
If the number of settlement fails are being reported in aggregate, what mechanisms, if any, has ESMA instituted to ensure this isn’t abused : for instance, that one or more companies have a higher settlement fail total than other stocks that may be evidence of predatory short selling ?
Surely there is an audit of the central depositories to ensure that there isn’t anything nefarious being hidden in the aggregate data.
Thank you once again,
Yours sincerely,
Bryan James
Dear Mr James,
We acknowledge receipt of your request for information and will get back to you in due course.
Kind regards
Enrico
Dear Sir,
Thank you for your message.
Pursuant to Article 7(1) of Regulation (EU) 909/2014 on central securities
depositories (CSDR) as supplemented by Article 14 of the Commission
Delegated Regulation (EU) 2018/1229 CSDs shall report information on
settlement fails to their competent authority, in particular figures on
various aspects of such fails and reasons for settlement fails.
However, in most cases, the root causes for settlement fails are not known
to a CSD: the CSD only knows its participants, which are generally not the
trading parties, therefore, investigating the real underlying reasons for
settlement fails (e.g. to make the link with the underlying securities
transactions) requires information from the CSD, the CSD participants and
potentially trading parties throughout the whole settlement and trading
chains.
Note that market abuses are sanctioned under a different regulatory
framework i.e. the Market abuse directive and regulation.
Best regards,
Karole-Anne Sauvet-Frot
Senior Policy Officer, Trading Unit, Markets and Data Reporting Department
European Securities and Markets Authority (ESMA)
201-203 rue de Bercy, 75012 Paris
[1]www.esma.europa.eu