Very interesting peter, well-thought and well-phrased - shortseller.org
You're certainly the man to moderate discussion on shorting ... i've lurked some high-profile shorters' threads for years, mostly for their entertainment value, and noticed many times your level-headed way of steering extremists back towards relevance ..... never shorted anything personally, but learned a lot from those who do ... no one can understand markets without some success at wrapping their brain around the point of view of shorts, imho
Naked short selling is fraudulent, it is the sale of something that doesn't exist, and any justice system worthy of the name would have long ago made it a felony under criminal law, imho, never mind exchange regs ...... that being said, most of what you hear about it comes from extremely dubious sources, as you point out on your 'promoters' page there
But that's another reason to eliminate the practise entirely - to take this excuse from them .... often the printers/promoters are the principal short-sellers of this sort of paper, since they can manufacture and vend it at will ... you don't have to worry about a borrow when you've got your own printing press, lol
I don't know about rule number 3 of your proposal, though .... seems to me that to sell something, first you have a responsibility to ensure that it exists .... on the other hand, the execution efficiency would be far easier, that is true ...... and three days is not so long, anyway
The whole DTC could maybe be improved by jacking up the hood ornament and sliding all new parts under ... i don't know that much about it, but there seem endless problems and a rather total lack of transparency .... the aussies have a system that works well, it is said, completely transparent, accountable, all electronic and screw-ups extremely uncommon ..... your idea of a one-stop lend-'n-borrow station could maybe be part of such a revamp, it's a good idea imho - if shorting was easier and less murky i might dabble a bit myself ..... cheers |
