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Opinion: Fidelity’s mysterious GameStop oopsie is responsible for the company you never doubt

update: Scroll to the bottom for the answer to this mystery …

Listen, mistakes always happen, even at the highest stages of finance.

Someone buys a keystroke and some zeros or adds them to a sales order, an intern on the trading floor drops coffee to a dissatisfied VP, and that VP demands the wrong stock transfer, or a bank executive Goes on a picnic with a mysterious client on his private Caribbean island, or once Standard & Poor’s accidentally downgraded France … a country.

But if you are Fidelity Investments and have spent much of 2021 pulling in a stable stream of retail investors thanks to Robin Hood.
Hood,
-7.75%

January’s Battle Fantasia brought trading restrictions on popular names due to the high shortage of memetic stocks — the last thing you want to do is give those retail apes a reason to lose trust in you. That is.

And you definitely don’t want to do that with stocks like GameStop
GME,
-8.34%
..

It’s pretty grumpy to see a growing band of retail apes spending ignoring much of Tuesday morning Macro blood bus for the entire index And when it comes to GameStop, we’ll go through what they think looks like a fish-like contradiction on Fidelity’s platform.

“WTF ?! Can anyone explain where these shares came from?” I contacted user Hamberere on GameStopsubredddit r / Superstonk late Tuesday morning and shared a screenshot of my Fidelity account. This indicates that there is a shortage of about 13,767,545 shares.

For Pro GME Ape, which took 10 months to keep short sellers out of GameStop shares and 10 months to transfer their account to Fidelity You can also register directly and keep it locked — This is a surprisingly large number of shares available, well over the 2 million available on Monday night.

Reddit’s modest explosion has led users to try DRS on stocks that have been lent out by Fidelity, brokerages have otherwise misunderstood them, or some large hedge funds have covered their short positions. Exploded with speculation (this was difficult to buy given inventory has decreased by more than 19% in the last 5 days).

Fidelity experienced a fierce influx of calls from individual investors on Tuesday and seems to have endured a tough day on social media. Something went wrong with GameStop in 2021.

And the company’s early attempts were restless and explained how Fidelity could calculate the available shares in a noon response to an angry customer on Reddit. This is what most Reddit Apes are now familiar with.

But by the afternoon, the explanation was available.

“Today, on November 30, our trade ticket reflected an incorrect number of GME shares that could be shorted,” Fidelity’s own subreddit posted shortly after 3:30 EST. Please read the post. “A volume survey by the lending service team found that the root cause was an incorrect entry of the number of available shares that one of the external counterparties was missing. This issue is today. Fixed by 12:10 ET ET. Shortable GME stocks are now correct with trade tickets. “

And the company has even revealed perhaps the most important concerns for retailers.

“We can confirm that the number of shares borrowed has never exceeded the actual available amount.”

The explanation was more complete, but it didn’t work very well.

And Wednesday’s social media, not just Wet Dirt Kurt, revealed that it’s almost certainly filled with internet research to find the external counterparties that are causing the mistake. One post already provides clues as to what kind of speculation dominates.

“A photo of the Fidelity intern responsible for data entry was leaked,” said r / Superstonk’s post, accompanied by a headshot of Kenneth C. Griffin, the founder of Citadel / ape archenemy, with a curly mustache. Taken in Photoshop.

However, Reddiit is already thriving with a bold campaign among Apes to keep GME shares registered directly and out of the hands of anyone trying to borrow or short them.

The campaign was boosted on Tuesday afternoon, with Fidelity piercing his dad’s reputed armor.

Wednesday should be interesting to everyone involved.

update: Wednesday was very interesting because I knew who the mysterious opponent was late at night … and it was probably a name that no one was on the suspect’s list.

“We provided Fidelity with incorrect” potential securities lending potential “data from Gamestop (GME) yesterday due to clerical data entry errors,” a Vanguard spokeswoman said in an exclusive statement. increase. “The error was fixed shortly thereafter, before the market opened. We apologize for the error. We apologize for any inconvenience.”

So, after all, the discrepancy turned out to be clearly a data snuff between Fidelity and Vanguard, perhaps the most tense and drama-hating name in the American financial industry.

Nonetheless, Thursday is just around the corner and we are ready for all the hot takes,

Opinion: Fidelity’s mysterious GameStop oopsie is responsible for the company you never doubt

Source link Opinion: Fidelity’s mysterious GameStop oopsie is responsible for the company you never doubt

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