Short Interest & FTDs
Failures to Deliver (FTDs)
When Shares Don't Show Up
A Failure to Deliver (FTD) occurs when a seller fails to deliver shares to a buyer by the settlement date. This can indicate naked shorting or other market mechanics issues.
Why FTDs Matter
High FTDs can indicate:
- Naked shorting (selling shares that don't exist)
- Settlement issues
- Unusual market activity
- Potential future buying pressure (to settle)
FTDs MUST eventually be settled, creating future buying pressure.
- Naked shorting (selling shares that don't exist)
- Settlement issues
- Unusual market activity
- Potential future buying pressure (to settle)
FTDs MUST eventually be settled, creating future buying pressure.
T+35 Rule
Market makers have up to 35 calendar days (T+35) to settle FTDs. Large FTDs can predict future price spikes when they must be closed.
SUTOK tracks FTD data when available. Large FTD spikes followed by T+35 can be trading opportunities.
Key Takeaways
- FTD = seller failed to deliver shares by settlement
- Can indicate naked shorting or settlement issues
- FTDs must eventually be settled (future buying)
- T+35 rule creates predictable settlement dates