SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Microcap & Penny Stocks : Naked Shorting-Hedge Fund & Market Maker manipulation?
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
From: Max Fletcher9/17/2008 10:17:27 AM
1 Recommendation   of 5034
 
The Securities and Exchange Commission issued three new rules, effective with the start of trading Thursday, aimed at curtailing a certain type of short-selling, amid pressure from Wall Street to put the brakes on perceived abusive trading.

Short sellers and brokers must deliver securities borrowed for short sales on the trade settlement date, three days after the transaction, or face penalties if they do not, the SEC said.

The tighter delivery requirement was adopted by the SEC as an interim final rule, and will take effect for all public-company securities starting at 12:01 a.m. EDT on Thursday.

The SEC also eliminated an exception from the close-out requirements for options market makers, making them subject to the same rules as everyone else. Regulators said that change will take effect five days after it is published in the Federal Register.

The SEC also approved a new anti-fraud rule targeted to short sellers who lie about the ability to deliver borrowed securities. That change takes effect immediately, the SEC said.

Short sellers aim to profit from declining stock prices by borrowing shares to sell and replacing them later at a lower price. So-called "naked" short sellers do not borrow shares before engaging in short sales and may never do so, a practice that can have punishing effects on a stock's price.

SEC Chairman Christopher Cox said in a statement that the changes "make it crystal clear that the SEC has zero tolerance for abusive naked short selling."
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News