No shorting of financials allowed: who monitors this?

O

Option Trader

What would stop the shorts from continuing doing their stuff--and perhaps even more today after some price recoveries? Who monitors them? Where are violations reported? Does anyone on Elite Trader even know where to report manipulative trading activity for an investigation*?





*Okay, I'm sure Flytiger will know, but please, if you are the only one who knows, then please tell everyone!
 
A good start, but this only covers a few companies...

http://www.guardian.co.uk/business/feedarticle/7826673

SEC orders hedge funds, broker-dealers to give dataReuters, Thursday September 25 2008 (Adds details, background)
WASHINGTON, Sept 25 (Reuters) - U.S. securities regulators have ordered more than two dozen hedge funds, broker-dealers and institutional investors to hand over information about their trading in certain financial institutions, a source briefed on the matter said on Thursday.
Late last week, the Securities and Exchange Commission said it was expanding its ongoing probe into possible market manipulation in certain financial companies' securities. The SEC did not name the companies.
But the agency said hedge fund managers, broker-dealers and big investors with significant trading activity in financial firms or positions in credit default swaps would be required to disclose those positions to the SEC and provide other information.
The SEC has taken several steps to crack down on market manipulation and rumor mongering, which has been blamed for the demise of big investment banks Bear Stearns and Lehman Brothers.
Mid-July, the agency and examiners from the New York Stock Exchange Regulation and the Financial Industry Regulatory Authority increased efforts to ensure that broker-dealers and investment advisers have controls in place to prevent the intentional creation or spreading of false information. (Reporting by Rachelle Younglai; Editing by Brian Moss and Gerald E. McCormick)
 
The SEC has taken several steps to crack down on market manipulation and rumor mongering, which has been blamed for the demise of big investment banks Bear Stearns and Lehman Brothers.

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I apologize for going off topic here but the above comment has been repeated quite often in many different places, it must be true (sarcasm).

In 5 or 10 years from now, students of the market will have a tough time uncovering the truth.
 
Every broker has a duty to verify compliance via their "Compliance" department - every broker has one. Their not going to risk their license to be a nice guy to you.

Violations can be reported to enforcement@sec.gov

Are your questions answered?
 
Quote from mgookin:

Every broker has a duty to verify compliance via their "Compliance" department - every broker has one. Their not going to risk their license to be a nice guy to you.

Violations can be reported to enforcement@sec.gov

Are your questions answered?
More...
Thank you much.
 
Quote from Option Trader:

What would stop the shorts from continuing doing their stuff--and perhaps even more today after some price recoveries?

the brokerages i deal with have simply done a "any stocks on the list, move them to unable to short".


*Okay, I'm sure Flytiger will know,

why you'd trust him with anything, i have no idea.
More...
 
Guys,

its a 1000 times simpler than that.

Once you go short - the trade needs to get crealered/matched. DTC does that.
As soon as they see a Short vs Buy - they know EXACTLY who did it, which broker, etc.
 
Quote from Esq Esq Esq:

Guys,

its a 1000 times simpler than that.

Once you go short - the trade needs to get crealered/matched. DTC does that.
As soon as they see a Short vs Buy - they know EXACTLY who did it, which broker, etc.
More...
And what about a case there is a violation of naked shorting? How would that get monitored to know when a broker has already ran out of shares?
 
Quote from Option Trader:

And what about a case there is a violation of naked shorting? How would that get monitored to know when a broker has already ran out of shares?
More...



They use outside auditors and when the sale is before the buy(time wise) they can see this. They are cracking down on this so be careful.
 
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