Pronichev, this is a very good question. Because the transactions contemplated are considered "hedged" transaction (shorting, in essence, against the block), they may not have to. Of course, It is possible that at any time their stock position does not exceed the threshold of 5%. But for officers, this would not be a consideration. In other "floorless" cases I have never seen reporting of such transactions despite the fact that the floorless bandits were in one case the President and majority stock holder (CAFE), and in other cases, they had much more then 10% equivalent equity position (CTYS, IELSF, EXSO, CHTL and few others, all companies that have gone down the drain from the impact of floorless securities).
I wish my answer could be more specific, but I simply do not know.
Zeev |
