from your piece; "The ban on “naked” short-selling—the sale of shares one has not yet borrowed—was announced on July 15th and allowed to lapse on August 12th. Its stated aim was to aid “price discovery”,
price discovery is as meaningful a term as overbought and oversold. In truth these three terms brake/violate the prevailing laws governing stock issuance. If you do not own shares or if you do not legitimately have a located short, the truth is you should not be allowed in the market. Period.
Investors take risks, it is the essence of price discovery, when systemic fabrication of rules, to facilitate price discovery, break the prevailing laws of stock issuance, then the risk reward equation is disconnect. Supply and demand work against a float relative constant, that is valuation occurring by parties associated by the risk taken.
There can be no legitimate excuse to allow Naked short selling, none......entanglement by derivative constructs, dont meet the test, nor does the broker dealer who accepts and sustains hisself by fees collected, for phantom ledger entries, qualify for exceptions.
The fact that these conditions have been admitted into the trade, speaks only to the levels of collusion and corrupted power by the administrative hubris, of an agency or agencies co opted to purpose. |
