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Strategies & Market Trends : Short-selling - Information and discussion -- Ignore unavailable to you. Want to Upgrade?

To: peter michaelson who wrote (10)	12/2/2003 2:26:41 PM
From: rrufff	Read Replies (1) \| Respond to of 74

I basically agree with your points and commend you. As I posted before, longs look on the appearance of shorts, particularly in a low-priced thinly-traded issue, as conspiratorial. Why? Because most can't short unless they go overseas bookie route. Add to that the sudden appearance of mindless bashing and you have the Yahoo game in action that has led to excesses both ways. Unfortunately, our regulators don't have the resources to do a comprehensive overhaul even though you and I could probably sit down and do it in a couple of days <ggggg>. They have to "study" it and "committee" it to death. Bottom line - they have to cover their posteriors and are worried about their jobs. So better to pretend that they are actually doing something. I'd like to see a group such as yours work together with a group that promotes issues for "longs" and come up with a comprehensive plan that address each and every one of the points you make, including the elimination or at least full disclosure in BIG PRINT of potential toxic financing and short selling by insiders. This group would also establish rules regulating hedge fund activities that come close or cross the manipulation line.

To: peter michaelson who wrote (10)	12/7/2003 5:39:55 PM
From: Edscharp	Respond to of 74

Pete, I was intrigued with your previous post to me. Tell me please. Would you be opposed to the new recently proposed regulation regarding 'naked shorting'? sec.gov Agency: Securities and Exchange Commission. Action: Proposed rule. Summary: The Securities and Exchange Commission (Commission) is publishing for public comment new Regulation SHO, under the Securities Exchange Act of 1934 (Exchange Act), which would replace Rules 3b-3, 10a-1, and 10a-2. The Commission is also proposing amendments to Rule 105 of Regulation M. Proposed Regulation SHO would, among other things, require short sellers in all equity securities to locate securities to borrow before selling, and would also impose strict delivery requirements on securities where many sellers have failed to deliver the securities. In part, this action is designed to address the problem of "naked" short selling. Proposed Regulation SHO would also institute a new uniform bid test allowing short sales to be effected at a price one cent above the consolidated best bid. This test would apply to all exchange-listed securities and Nasdaq National Market System Securities (NMS Securities), wherever traded. We are also seeking comment on a temporary rule that would suspend the operation of the proposed bid test for specified liquid securities during a two-year pilot period. The temporary suspension would allow the Commission to study the effects of relatively unrestricted short selling on market volatility, price efficiency, and liquidity. Dates: Comments must be received on or before January 5, 2004. Addresses: To help us process and review your comments more efficiently, comments should be sent by hard copy or e-mail, but not by both methods. Comments sent by hard copy should be submitted in triplicate to Jonathan G. Katz, Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. Comments also may be submitted electronically at the following E-mail address: rule-comments@sec.gov. All comment letters should refer to File No. S7-23-03. Comments submitted by E-mail should include this file number in the subject line. Comment letters received will be available for public inspection and copying in the Commission's Public Reference Room, 450 Fifth Street, NW, Washington, DC 20549. Electronically submitted comment letters will be posted on the Commission's Internet web site