Order Marking

[mr19]

LONG 100, want to sell 300. I know I have to split this into two orders, SELL 100, SELL_SHORT 200. If I then decide I only want to SELL 200, can I just cancel the SELL 100 order? Or do I have to cancel both and then send SELL 100, SELL_SHORT 100?

Can't find anything that covers this, my initial feel is that you can just cancel the 100 since both orders were marked properly when placed.

Thanks for any feedback.

Mar

 

[rosy2]

Quote from mr19:

LONG 100, want to sell 300. I know I have to split this into two orders, SELL 100, SELL_SHORT 200.

where do you see that?

 

[mr19]

Well, I know if I don't do it this way I get an email first thing AM from our compliance dept. But here is an excerpt from the Reg SHO FAQ at http://www.sec.gov/divisions/marketreg/mrfaqregsho1204.htm

(NEW! 08/28/09)

Question 2.4: How should a broker-dealer mark an order where the seller is net long for only part of the order?

Answer: A seller may be net long a security but wish to sell additional shares of that security in excess of the seller's net long position. For example, a seller may be net long 500 shares of a security but may wish to sell a total of 600 shares of that security. Under such circumstances, only 500 shares can be sold long, and the remaining 100 shares must be sold short.