LOL ... Wouldn¡¦t be nice IF and I say IF this was done for America:
Short Selling Regulations
1. NASD in conjunction with SEC will step up inspection and follow-up actions on unsettled sales trades outside T+2. Heavy penalties including termination of membership for repeated offenders will be imposed on brokers in breach of NASD rules. SEC will also take prosecution against clients and brokers conducting illegal short selling.
2. NASD and the SEC will take joint actions to require all broker members and registered dealers to make submissions on short selling trades performed in the past two weeks.
3. NASD has set up a task force to amend its rules to increase disciplinary actions on breaches of its short sales rules and default brokers, including penalty charges, temporary suspension of trading and even termination of membership.
4. NASD have also reminded its members to discharge their responsibility seriously, including ascertaining that their clients do have the covering stocks for sales order and in the case of short sales do have appropriate arrangements in hand, report them to the Exchange and strictly adhere to the relevant Exchange Rules on short selling. They have also been reminded of possible heavy penalties in case of violation of the rules.
5. NASD has reinstated the "uptick" rule to reduce the selling pressure of short selling on market prices. The rule has been approved by the SEC and come into effect today
6. NASD will review the current list of Designated Securities eligible for short selling to ensure that only stocks with sufficient liquidity will be accepted for short selling.
7. NASD will remind its members to ascertain the identity of their beneficiary clients and disclose the information to the SEC upon request.
8. NASD will review the rules on covered warrants, such as requiring physical settlement and prohibiting issuers from re-issuing the warrants bought back from the market.
9. Strengthen enforcement and prosecution against illegal short selling.
10. Co-ordinate and supervise the progress and implementation of the above measures, and provide support as may be necessary.
11. Study criminalizing unreported short selling.
12. Increase the penalties on illegal short selling. The preliminary proposal by SEC is to increase the maximum penalty of $10,000 and 6-month imprisonment to $100,000 and 2-year imprisonment, so as to enhance its deterrent effect.
13. Prepare legislative proposal to make false reporting to SEC and exchanges a criminal offense.
14. Examine the feasibility of scripless market to solve the problems arising from physical custody and settlement.
15. Closely monitor the implementation of the above measures.
16. Co-ordinate on the study on regulation over stock lending and borrowing SLB including regulation over custodians and other stock lenders, so as to enhance transparency on SLB and protection for interests of beneficiary owners of stocks.
17. Co-ordinate on the study on regulation over share registrars.
18. Submit the following legislation to COngress a.s.a.p.
* criminalisation of unreported short selling
* increase in penalties on illegal short selling
* criminalisation of false reporting to SEC and exchanges.
19. Study the need to amend current legislation to enable the government to react to market situations promptly.
20. Although existing rules already empowers the Chief Executive to give direction to the SEC, legal advice suggests that such power does not apply to exchanges and clearing houses and that it is subject to certain limitations. Therefore, it might be necessary to strengthen the power of the Chief Executive to give direction to the exchanges and clearing houses to ensure that the government can react quickly whenever public interests are under threat.
21. Co-ordinate a cross-market supervision committee to exchange market information among FBI, SEC, NASD, IRS and other agencies on a regular basis, and to take prompt and appropriate actions in response to anticipated market manipulation.
P2bAAAT & DSAS |
