SEVU: Will the Fallen Star Rise Again? Message Board

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Microcap & Penny Stocks : SEVU: Will the Fallen Star Rise Again?

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To: Francois Goelo who started this subject	5/6/2001 11:07:05 PM
From: Francois Goelo	Read Replies (1) of 67

VIOLATIONS of SHORT SALE RULES: IM-3350 and 3370.... These are the Trading Rules commonly violated by Market Makers shorting naked a stock for days on end and it's quite possible that's what NAIB is doing with SEVU... NAIB Particulars: Fort Lauderdale... Phone: 954-484 1490... Compliance Officer: Robert Gaeta... rgaeta@naib.com... SEVU trades: March 16,500 shares... April 758,000 shares, the most of any MM for that month... chart.yahoo.com. JMHO, F. Goelo + + + secure.nasdr.com. - 3350(a)(3) Similarly, bona fide market making would exclude activity that is related to speculative selling strategies of the member or investment decisions of the firm and is disproportionate to the usual market making patterns or practices of the member in that security. The Association does not anticipate that a firm could properly take advantage of its market maker exemption to effectuate such speculative or investment short selling decisions. Disproportionate short selling in a market making account to effectuate such strategies will be viewed by the Association as inappropriate activity that does not represent bona fide market making and would therefore be in violation of Rule 3350. - 3350(c)(3) The Association believes that members’ activities to circumvent the Rule through indirect actions such as executions with other members or through facilitation of customer orders while being protected from loss are antithetical to the purposes of the Rule. Accordingly, the Association will consider any such activity as a violation of Rule 3350. - 3370(b)(2)(A) Customer short sales... No member or person associated with a member shall accept a “short” sale order for any customer in any security unless the member or person associated with a member makes an affirmative determination that the member will receive delivery of the security from the customer or that the member can borrow the security on behalf of the customer for delivery by settlement date. This requirement shall not apply, however, to transactions in corporate debt securities. -3370(b0(2)(B) Proprietary short sales... No member shall effect a “short” sale for its own account in any security unless the member or person associated with a member makes an affirmative determination that the member can borrow the securities or otherwise provide for delivery of the securities by the settlement date. This requirement will not apply to transactions in corporate debt securities, to bona fide market making transactions by a member in securities in which it is registered as a Nasdaq market maker, to bona fide market maker transactions in non-Nasdaq securities in which the market maker publishes a two-sided quotation in an independent quotation medium, or to transactions which result in fully hedged or arbitraged positions.

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