What Happened to the Stock Markets Dec. 23rd? Sources Claim Over 70 Billion in FTD’s

Record-Breaking Fail-to-Delivers on December 23, 2024, Raise Alarms About Wall Street Practices

On December 23, 2024, the U.S. stock market saw an unprecedented spike in fail-to-deliver (FTD) transactions, reaching record-breaking dollar amounts. Analysts estimate the total FTDs for the day exceeded $70 Billion, sparking concerns among investors and market watchdogs about the integrity of the financial system. Critics argue that these staggering numbers underscore systemic issues within market enforcement and regulation, raising questions about the accountability of Wall Street, banks, and financial institutions.

Fail-to-deliver transactions occur when one party in a trade fails to deliver the security or funds required for settlement. While occasional FTDs can result from technical errors or temporary liquidity issues, persistently high levels are often associated with manipulative practices, such as naked short selling. This tactic involves selling shares without first borrowing them, creating artificial supply that can drive down stock prices.

Regulatory Inaction and Minimal Penalties

Despite the scale of the problem, enforcement by regulatory bodies like the Securities and Exchange Commission (SEC) has been widely criticized as insufficient. Observers point to a pattern of small fines that fail to serve as meaningful deterrents. For instance, JPMorgan Chase, one of the largest financial institutions in the world, reportedly amassed $80 billion in FTDs over the past 15 years. Yet, the company was fined a mere $3 million for related violations—an amount many critics liken to a slap on the wrist.

Such penalties pale in comparison to the profits that can be generated through market manipulation. “It’s the cost of doing business for these firms,” said a whistleblower familiar with trading operations at a major bank. “The fines are so small that they’re effectively a green light to keep engaging in these practices.”

Regulatory Capture and Conflicts of Interest

The limited enforcement has led some to argue that regulatory bodies are compromised by regulatory capture, a phenomenon where agencies tasked with oversight become influenced or controlled by the industries they regulate. Critics cite the revolving door between Wall Street and government as a key factor, with executives frequently moving between financial institutions and leadership roles in regulatory bodies.

“At this point, it’s hard to tell where Wall Street ends and the SEC begins,” remarked one market analyst. “When you have regulators who were once executives at the very firms they’re supposed to oversee, it creates a culture of leniency and complicity.”

Public Outcry and Calls for Reform

The record-breaking FTDs on December 23 have reignited calls for systemic reform. Retail investors, who have been vocal about market manipulation since the GameStop short squeeze of 2021, are once again demanding transparency and stricter enforcement. Social media platforms and online forums have been flooded with discussions about potential solutions, including real-time reporting of FTDs, higher penalties for violations, and stricter rules against naked short selling.

However, meaningful change may be difficult to achieve without addressing the structural issues that enable regulatory capture. “We need a complete overhaul of the system,” said a representative from a retail investor advocacy group. “Until regulators are held accountable and real penalties are imposed, these practices will continue unchecked.”

Conclusion

The staggering FTD numbers on December 23, 2024, highlight the need for greater scrutiny of Wall Street practices and the regulatory bodies tasked with oversight. As retail investors and advocacy groups push for reform, the question remains: will the record-breaking figures serve as a wake-up call for regulators, or will they become just another footnote in the ongoing saga of market manipulation?