How do all the naked shorts and all the fail to deliver numbers look?
8/1/2025 12:21am
Currently, there is no available data on naked short positions or fail-to-deliver ratios.
1. **Naked Short Selling**: Naked short selling is an illegal practice where a seller does not borrow or arrange to borrow the securities in time to make delivery to the buyer within the standard settlement period. This failure to deliver may result from naked short selling or other legitimate reasons such as human or mechanical errors.
2. **Regulatory Measures**: The Securities and Exchange Commission (SEC) has enacted Regulation SHO to target abusive naked short selling, including mandatory delivery of stocks at clearing time and requiring brokers to have borrowed shares on behalf of their clients.
Given the current regulatory environment and the lack of available data, it is important for investors to focus on the broader market sentiment and company fundamentals rather than relying on naked short selling metrics. High short interest can sometimes indicate bullish sentiment as it may lead to a short squeeze if the price of the stock increases.