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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To: Clase Azul who wrote (422)	11/2/2005 3:34:44 PM
From: rrufff	Read Replies (1) of 5034

Let's start with this - this board is for civil discussion. We start with a blank slate. Also - I'm not just about naked shorting. So don't try to paint me into that corner here. I'm for a total revamp of the clearing system, the MM system, putting technology to use to have trading more auction oriented, information available to all, etc. I'm for tighter and more objective parameters for MM's with respect to their ability to naked short in order to make an orderly and efficient market. The limitations would be based on volume, price parameters and time. E.g., they couldn't keep a position open indefinitely. I'm for efficient regulation of hedge funds as well as disclosure requirements. I'm for elimination of the ability to short into convertibles and PIPE's ahead of time. I.e., no shorting and no selling until the terms and conditions are fully disclosed. I'm also for the same requirement being imposed on promoters, underwriters, brokers, insiders and management. Full disclosure BEFORE they can sell. Level the playing field and don't just use the retail investor as a piggy bank with his eyes shut. In other words, fair and open playing field for all. The retail investor must be protected or we only have markets for the moneyed and the manipulators. The amendments to NASD Rule 3370 look good in principle. I don't have any information as to how they are working. How can enforcement be expected when overseas trading desks just decide to stonewall? Internal desking of orders and then routing through other non-NASD members may create a universe of potential avoidance of the rule such that neither the NASD nor the SEC has an opportunity to enforce or even monitor. As we all know, a rule is only as good as enforcement. I may be wrong on this but I envision a total market make-over that includes the writing of treaties with our trading partners so that the type of international manipulation is better discovered and eliminated.

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