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all this blanket rule will do is increase transactions costs and suck the liquidity out of the market. More trading will move overseas where there aren't silly restrictions. It's a sad day when European markets are more free market than the US. Why not drop the pretense and just institute...

Again, naked shorting is not the issue. Naked shorts are like futures on the stock. Persistent failures to deliver are the problem and the loopholes afforded market makers the main culprit. If the SEC just enforced its own Reg Sho rules instead of oh so visibly shouting that they are going...

I've read that one too. He's making a lot of assumptions in that article, based on incomplete data. Thus, his conclusions are suspect. That said, the problem is still settle. If the SEC just enforced settling, then all the "phantom shares" would disappear in short order. The dog and...

Actually, it isn't "the law". The rule is locate, not borrow. I think the way brokers will respond will depend on whether you are an institutional or a retail account. My expectation is that that retail brokers will immediately start charging for borrows and you will have to make a call...

This is a link to an interesting study of short selling (including naked short selling) from the CATO institute. http://www.cato.org/pubs/regulation/regv31n1/v31n1-6.pdf

Fly, There are several loopholes options market makers can use to avoid delivery of the stock. For example, if they are notified of a buy-in, they offer out the stock (since they don't have to locate, they can offer it naked) and essentially buy their entire position from themselves. This...