Datek Brokerage $9.95 a trade Message Board

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Non-Tech : Datek Brokerage $9.95 a trade

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To: Peter Stern who wrote (8321)	5/1/1998 3:29:00 PM
From: Dirk Hente	Read Replies (1) of 16892

[Short Selling @Nasdaq] Peter, as far as i know, a short sale is legal even in a down bid situation. According to a NASD Notice to Members about the 'Legal Definition Of Short Sale' ( nasdr.com ) the IM-3350 Short Sale rule says: [...]The Association has determined that in order to effect a "legal" short sale when the current best bid is lower than the preceding best bid the short sale must be executed at a price of at least 1/16th point above the current inside bid [when the current inside spread is 1/16th point or greater]. The last sale report for such a trade would, therefore, be above the inside bid by at least 1/16th of a point. [If the current spread is less than 1/16th of a point, however, the short sale must be executed at a price equal to or greater than the current inside offer price.] From this, i understand that it should be possible to execute a legal short sale in a 'down market'. Can you comment on this? BTW, its of no importance for me because i dont short stocks.

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