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Microcap & Penny Stocks : Naked Shorting-Hedge Fund & Market Maker manipulation? -- Ignore unavailable to you. Want to Upgrade?

To: basserdan who wrote (4083)	12/19/2008 5:20:53 AM
From: rrufff	1 Recommendation Respond to of 5034

Highlights - make a lot of sense a) The automatic breaking of all failed trades and returning all purchase money to the original buyers promptly and automatically, and b) The revocation of securities licenses of habitual violators of 15c6-1 who cause fails. This way, the Commission could ensure compliance with 15c6-1 with very few resources as it would be self enforcing and those who repeatedly breach the public trust and disregard the law would be removed from the securities industry. Problems with 204T While we are happy that the Commission is adopting more restrictive rules, it is not near enough as this is yet another layer of rules without enforcement. Something is better than nothing. But: 1. It is yet another layer of rules trying to deal with habitual rule violators of 15c6-1 and others. 2. It allows the “close out” of fails to deliver by borrowing stock, rather than by buying stock. This pushes the liability of possibly not receiving stock on demand onto the lender of securities. The failing party still is liable to deliver the stock to the lender. It only moves the fail around. 3. It treats market makers differently with exemptions only for them, violating Section 6(b)(5) 4. It does not force anyone to close out fails nor does it stop new fails, as the only “penalty” is a mandatory pre-borrow applied only to those who have open fails. 5. REG SHO has shown that more regulation does not affect fails. Only enforcement does. Conclusion The securities markets in the U.S. have become a house of cards shaking precariously due to the persistent fail obligations and price manipulations of individual securities via fails. Prompt and accurate settlement of trades is the most basic function in any market. This is not something investors or issuers should have to beg for. Deliberately not enforcing settlement as required by federal statute makes the Commission look like securities industry lap dogs.

To: basserdan who wrote (4083)	12/19/2008 4:01:53 PM
From: dvdw©	Respond to of 5034

From Nasdaq Equities Trading Nov 2008 The average daily value traded on NASDAQ OMX exchanges totaled USD $91.1 billion (EUR 71.7 billion) in November 2008 as compared with USD $103.8 billion (EUR 70.8 billion) in November 2007, representing a decrease of 12%. The average daily number of trades executed on NASDAQ OMX exchanges totaled 15.0 million in November 2008, an increase of 54% over the same month last year. NASDAQ's matched share of U.S. equity volume in November 2008 was more than any other U.S. exchange for the twentieth consecutive month at 29.5%. NASDAQ's average daily matched volume in all U.S. securities was 3.1 billion shares in November 2008, a 38% increase from November 2007. NASDAQ's total matched volume in U.S. equities in November was 59.5 billion shares, an increase from 47.5 billion in November 2007. The NASDAQ Stock Market's average daily matched trade count in U.S. equities was 14.8 million, an increase of 55% over November 2007. NASDAQ's total matched volume in NYSE-listed securities in November 2008 was 25.6 billion shares, compared to 17.0 billion shares in November 2007. NASDAQ's average daily matched volume in NYSE-listed stocks was 1.35 billion shares in November, a 67% increase compared with the same period last year. NASDAQ's matched market share in NYSE-listed securities last month was 22.3%, an increase of 2.7% over the same period one year ago. Average daily matched volume in NASDAQ-listed securities in November was 964 million shares. In November, 18.5% of NASDAQ's matched volume resulted from non-displayed orders, adding 10.9 billion shares of dark liquidity to the NASDAQ