GUMM - Eliminate the Common Cold Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Biotech / Medical : GUMM - Eliminate the Common Cold

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Mike M who wrote (665)	6/29/1999 9:18:00 AM
From: DanZ	Read Replies (1) of 5582

Is anybody familiar with Section 71 or Regulation 11830 of the Uniform Practice Code, Mandatory Close Outs of Short Sales? I posted about this in March and it came up again on the Yahoo thread yesterday. I'm specifically interested in what it could mean to the short position in GUMM and whether some short sellers could be forced to cover. Please refer to messages.yahoo.com and the eight messages after that one ending with messages.yahoo.com. Links to the NASD manual expire after 60 minutes so unfortunately it does no good to post it. Here is the text of UPC Regulation 11830 as described in the National Association of Securities Dealers Manual and Notices to Members. The text in Section 71 explains this in more detail and provides rationale for why the NASD imposed the rule. 11830. Mandatory Close-Out for Short Sales (a) A contract involving a short sale in Nasdaq securities described in paragraph (b) hereof, for the account of a customer or for a member's own account, which has not resulted in delivery by the broker/dealer representing the seller within 10 business days after the normal settlement date, must be closed by the broker/dealer representing the seller by purchasing for cash or guaranteed delivery securities of like kind and quantity. (b) This requirement shall apply to Nasdaq securities, as published by the Association, which have clearing short position of 10,000 shares or more and that are equal to at least one-half (1/2) of one percent of the issue's total shares outstanding. (c) This mandatory close-out requirement shall not apply to bona fide market making transactions and transactions that result in fully hedged or arbitraged positions. [Adopted eff. July 14, 1993.] Thanks, Dan

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next