Naked Shorting-Hedge Fund & Market Maker manipulation? Message Board

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Microcap & Penny Stocks : Naked Shorting-Hedge Fund & Market Maker manipulation?

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From: pcyhuang	10/11/2007 2:42:04 AM
	of 5034

Goldman's Memo to Clients on Short Selling Clients are reminded of the SEC’s recent revisions to Regulation SHO which, among other things, eliminated the "sell short exempt" order type. Accordingly, on or before October 5th, 2007, "sell short exempt" (SSE) will no longer be available on REDI. Order Marking Requirements Effective October 8, 2007, all sales must be marked as either "sell long" or "sell short". Rule 200(g) of Regulation SHO requires an order to be marked "sell long" only if the seller is deemed to own the security and either the security is in the physical possession or control of the broker-dealer or it is reasonably expected that the security will be in the physical possession or control no later than the settlement date. Further, this long sale transaction needs to be executed in a cash account. Locate Requirements Pursuant to Reg SHO, all short sales of equity securities are generally subject to a locate requirement. Accordingly, unless an exemption applies1, clients should not enter a short sale order unless they have actually borrowed or made bona-fide arrangements to borrow the security, or have made a reasonable determination that the security can be borrowed for delivery on settlement date. For more information, please refer to SEC Final Rule - Reg SHO (http://sec.gov/rules/final/2007/34-55970.pdf) or contact your coverage representative. Examples of locate exemptions are bona-fide market making and sale of formerly restricted security pursuant to Rule 144 under Securities Act of 1933 that may not be capable of being delivered on settlement date. Source: redi.com pcyhuang

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