Breaking News: SEC FINALLY Bans Naked Short Selling - Flytiger Vindicated
- Thread starter aeliodon
- Start date
How about a web link?so i guess your saying that leh was never going concern, and should be what the analysts say it should be worth or bear, or what about WM and the boondoggle going on there, take the tinfoil hat off and step away from the paintchips
I think you guys have made some good points about MS out of options to do it themselves so they involve the SEC. Short selling should not impact the business operations of any company unless they have credit based on the price.
There is centralized clearing in the U.S. its called DTCC. The regulators should put a stop to naked short selling but to see if it really is a problem, they need more current information than June 08. You could require DTCC participants to disclose FTDs on a daily basis. Then you could identify who is doing the naked shorting and ennforce the rules that are currently on the books. Although even the FTD data will not give you an exact answer, some FTDs occur for other reasons.
22B is large relative to daily trading volume but pretty darn small compared to float. Also, MS, and previously Merrill and Bear made tons of money on stock loan. The current Reg SHO requires a borrow to be found before shorting. As broker/dealers, it is their responsibility to verify their customer's borrow before executing a short sale. So if anyone is naked short, they share some of the blame for facilitating this behavior.
There is centralized clearing in the U.S. its called DTCC. The regulators should put a stop to naked short selling but to see if it really is a problem, they need more current information than June 08. You could require DTCC participants to disclose FTDs on a daily basis. Then you could identify who is doing the naked shorting and ennforce the rules that are currently on the books. Although even the FTD data will not give you an exact answer, some FTDs occur for other reasons.
22B is large relative to daily trading volume but pretty darn small compared to float. Also, MS, and previously Merrill and Bear made tons of money on stock loan. The current Reg SHO requires a borrow to be found before shorting. As broker/dealers, it is their responsibility to verify their customer's borrow before executing a short sale. So if anyone is naked short, they share some of the blame for facilitating this behavior.
correct me if im wrong, but for the daytrader NOTHING tomorrow should change. ANy stock we had today to shot we should be able to short tomrrow without calling. This rule only applies when you have to deliver stock on the 3rd day after a short.
I would find it pretty difficult for every trader and firm to have to call there clearing firm every time they wanted to short a stock. 1000 people in my office call my firm, then my firm calls Goldman to get the borrow, times that by the 1000 firms that use goldman to borrow stocks.
do people agree or disagree?
I would find it pretty difficult for every trader and firm to have to call there clearing firm every time they wanted to short a stock. 1000 people in my office call my firm, then my firm calls Goldman to get the borrow, times that by the 1000 firms that use goldman to borrow stocks.
do people agree or disagree?