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Strategies & Market Trends : The Final Frontier - Online Remote Trading -- Ignore unavailable to you. Want to Upgrade?

To: wiley murray who wrote (3621)	4/2/1998 11:50:00 AM
From: steve goldman	Read Replies (2) \| Respond to of 12617

I stand corrected: I spent a half hour speaking being bounced from person to person at the NASD, finally was able to get in touch withsomeone in market operations. According to this individual, here are som of the rules relating to short sales on NASD: 1. The policy of the SEC's uptick rule is in effect and the nasdaq is subject to it, but is applied as follows since it is an negotiated marketplcae of various marketmakers rather than an auction like NYSE with a specialists: --> there exists a bidtick rule. You can legally execute an order on a uptick, any time. You can not sell on a down bidtick anytime but can sell inbetween a 1/16 above the bid. is..10 x 10 1/8...10bid is up from 9 15/16...can short at 10 1/16. but must be atleast 1/16 greater than bid. If spread is less than 1/32 you can sell the offer, hence its not the 1/16 they want but then a 1/16th doesnt exist. -->i spoke to three different people who could not definatively answer whether you could short using soes. They are having alegal counsel get back to me....welcome to nasdaq. But someone in market operations felt he had seen it done but he was talking procedurally not legally. A lot of hedging and noone knowing. If they can't get it straight, how do they expect to police it. Regards, Steve@yamner.com