Selective Transparency: Who is the SEC Really Protecting

[flytiger]

Quote from nutmeg:

We have been involved in identifying, investigating and exposing illegal and fraudulent activity in the securities industry for more than 25 years.
----------------

Written any books, articles during that time that you'd care to share. 25 years is a long time.
tia

I got one coming out in the spring. I'm calling it, "I've Been Fucked".

 

[AMGLLC]

. . . legally, whether they are good or "shitty" stocks as you so suggest.

Simple rule change, obtain a "locate" before you are allowed to place the trade. Balance the playing field, nothing more, nothing less.

AMG

 

[patchie]

Quote from AMGLLC:

. . . legally, whether they are good or "shitty" stocks as you so suggest.

Simple rule change, obtain a "locate" before you are allowed to place the trade. Balance the playing field, nothing more, nothing less.

AMG

I totally disagree here. The locate creates opportunity for failure. The only safe solution for both the short seller and the markets is a hard borrow before the trade. The hard borrow will eliminate the "multiple use of a locate" since the locate does not turn into a borrow until T+2. The hard borrow will likewise eliminate teh potential for settlement failure and all the extra curricular activities that are required thereafter.

securities laws should be straight forward so that failure of such laws are easily detected and actions taken. Locate requirements require audits to identify where a locate was not achieved. These are delayed responses that allow for the manipulation and profits to be achieved long before fraud is detected.

In a hard borrow, failed trades show up immediately on T+3, identifying who owns the fail. Regulators know exactly where to go for the answers as to why a fail was achieved.