Security First International Holdings, Inc (OTC:SCFR) Begins to Investgate "Naked Short Selling" and "Fail To Deliver" (FTD) in the Companies Trading Float

Rhea-AI Summary

Security First International Holdings, Inc. announced on April 25, 2023, a comprehensive investigation into trading anomalies related to its stock. The company suspects instances of naked short selling and significant fails to deliver (FTD) by various brokerage firms. Naked shorting, which is illegal, involves short selling shares that have not been confirmed to exist. The company highlighted that many firms fail to hold adequate shares for their clients, potentially creating an imbalance in the market and resulting in the circulation of phantom shares. This situation could lead to an oversold market, undermining true market execution. Security First aims to keep its shareholders informed of its findings as the investigation progresses.

Positive

• Initiation of an investigation into suspected trading anomalies may promote shareholder transparency.
• Potential identification of trading malpractice could enhance the company's credibility.
• Ongoing communication with shareholders demonstrates commitment to transparency.

Negative

• Suspected naked short selling indicates a risk to stock value and market integrity.
• Fails to deliver suggest systemic issues within brokerage firms affecting stock liquidity.
• Potential concentration of phantom shares may distort the true trading environment.

FT. LAUDERDALE, FL / ACCESSWIRE / April 25, 2023 / Security First International Holdings, Inc today announced they have begun a deep dive into trading anomalies of the companies trading float. The company believes that there have been occurrences of naked short selling and a significant fail to deliver by a number of brokerage firms and broker-dealers.

Naked shorting is the illegal practice of short selling shares that have not been affirmatively determined to exist. Ordinarily, traders must borrow a stock or determine that it can be borrowed before they sell it short. So naked shorting refers to short pressure on a stock that may be larger than the tradable shares in the market.

Despite being made illegal after the 2008-09 financial crisis, naked shorting continues to happen because of loopholes in rules and discrepancies between paper and electronic trading systems.

Security First International Holdings Inc is a "non-dtc" company, meaning that brokerage firms and broker-dealers are required to hold paper certificates in custody on behalf of their client. It has come to the company's attention that not all firms hold an adequate amount shares for their clients. With firms not being in balance could result in a fail to deliver or create a run-away float with phantom shares.

A fail to deliver (FTD) occurs when the seller (the party with a short position) does not own all or any of the underlying assets required at settlement, and so cannot make the delivery.

The company believes there is a large concentration of phantom shares being held by brokerage firms on behalf of their clients without the underlying asset being held in custody.

Custody services provided by a brokerage firm typically include the settlement, safekeeping, and reporting of clients' marketable securities. With a number of tier one brokerage firms not acquiring the underlying assets this has created an oversold market preventing true market execution.

The company plans to keep shareholders updated on the findings.

About Security First International Holdings, Inc.

Security First International Holdings, Inc. is a technology incubator for early-stage web and mobile projects.

Contact

Security First International Holdings, Inc.
info@scfrholdings.com
(954) 546-1501

Forward Looking Statements

This press release may contain forward-looking statements that involve risks and uncertainties. These statements relate to future events or the Company's future financial performance. In some cases, forward-looking statements may be identified by terminology including "could," "may," "will," "should," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential" and the negative of these terms or other comparable terminology. While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect the Company's current judgment regarding the direction of its business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggested in this report. Except as required by applicable law, the Company does not intend to update any of the forward-looking statements to conform these statements to actual results. Investors should refer to the risks disclosed in the Company's reports filed from time to time with OTC Markets (www.otcmarkets.com).

SOURCE: Security First International Holdings, Inc.

View source version on accesswire.com:
https://www.accesswire.com/751096/Security-First-International-Holdings-Inc-OTCSCFR-Begins-to-Investgate-Naked-Short-Selling-and-Fail-To-Deliver-FTD-in-the-Companies-Trading-Float

FAQ

What is the significance of naked short selling for SCFR?

Naked short selling refers to selling shares not confirmed to exist, which may undermine SCFR's stock value and market stability.

How does Security First International Holdings plan to address trading anomalies?

The company has initiated an investigation into trading anomalies and aims to keep shareholders updated on the findings.

What are fails to deliver (FTD) and their implications for SCFR?

FTD occurs when sellers cannot deliver shares due to not owning them, leading to liquidity issues and potential stock price manipulation.

When did Security First International Holdings announce the trading anomaly investigation?

The announcement was made on April 25, 2023.

What are phantom shares and why are they a concern for SCFR?

Phantom shares are shares that exist without an underlying asset being held, which can distort trading and reduce market integrity.