Core terms
Failure to Deliver (FTD)
An FTD occurs when securities are not delivered when settlement is due. Fails can arise from short sales, long sales or processing issues; they differ from outstanding short positions (short interest).
What traders should verify
Check the settlement date, data definition and source. A dated fail balance is not daily trading volume. Threshold membership also does not reveal a particular participant’s position history.
Do not conflate
An FTD or threshold listing alone does not prove illegal naked short selling or establish when, how much or at what price someone will buy shares.