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To: Oeconomicus who wrote (6207)	1/12/1998 6:54:00 PM
From: Don Westermeyer	Respond to of 27307

Bob, I don't believe 50% is any magic number as far as being able to short shares. MMs can call in shares they hold and those shares can't be shorted though.

To: Oeconomicus who wrote (6207)	1/12/1998 7:05:00 PM
From: fut_trade	Respond to of 27307

<<When around 50% of the float has been shorted, no shares further shares can be borrowed." Is this a NASDAQ rule?>> The float gives a "rough" number regarding the number of shares that can be shorted. Sometimes insiders loan out their own shares and then call them back in to create a short squeeze. Sometime folks even loan own shares that they're not permitted to do under SEC regulations. Peter

To: Oeconomicus who wrote (6207)	1/12/1998 7:12:00 PM
From: Michael Collings	Read Replies (1) \| Respond to of 27307

<< But 5700 is still a lot of contracts for one strike/expiry.>> I think you may be wrong on the exchanges. Over 6,000 contracts have traded in the last month. I'll get you the exact numbers tomorrow. <<Is this a NASDAQ rule? >> Ususally at around 50% of the float being short, a UPC-71 is issued. It means that there are few, if any, shortable shares and that no trades over 10,000 shares can be executed. It is also a warning that shorts are at risk having their shares called. I have experienced shares being called only a couple of times and each time it was only a fraction of my position.