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To: Krowbar who wrote (7382)	10/22/2003 3:20:35 PM
From: Krowbar	Read Replies (1) \| Respond to of 8393

October 20, 2003. (FinancialWire) In a surprise announcement that has shot through the U.S. microcap securities community like a lightening bolt, the U.S. Securities and Exchange Commission said late last week it will consider a new Regulation SHO Wednesday, October 22, at its 10 a.m. meeting. The regulation would require short sellers in all equity securities to locate securities to borrow before selling short, and add further requirements to address "naked" short selling. The practice of selling stocks without securing certificates has pitted at least 13 market makers, including Deutsche Bank AG (NYSE: DB), Goldman, Sachs & Co. (NYSE: GS), Knight Securities, LP (NASDAQ: NITE), and Ladenburg Thalmann & Co., Inc. (AMEX: LHS), against some 106 public companies claiming “foul” for over a year now, and has also called into question the electronic settlement system run by the Depository Trust and Clearing Corp. more commonly referred to as the “DTC.” Despite its immense power in the securities industry, and its “old boy” network of directors, the Depository Trust has so far largely escaped the governance crises that have struck, first the U.S. Securities and Exchange Commission itself under Harvey L. Pitt, and then the New York Stock Exchange and the American Stock Exchange, currently owned by NASDAQ (OTCBB: NDAQ). Among other things, Regulation SHO would institute a new uniform bid test, applicable to exchange-listed and NASDAQ National Market System securities, that would allow short sales to be effected at a price above the consolidated best bid. Regulation SHO would also suspend the operation of the proposed bid test for specified highly liquid securities on a two-year pilot basis.