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Non-Tech : MB TRADING -- Ignore unavailable to you. Want to Upgrade?

To: Ross who wrote (62)	4/22/1998 5:54:00 PM
From: Lino	Respond to of 7382

Ross, Do you mean that if you have a short position established and TNTO finds that there is a shortage of the stock, they will force you to cover even if is not advantageous to do so at that time? Seems unfair if they had already permitted you to borrow the stock originally.

To: Ross who wrote (62)	4/22/1998 6:58:00 PM
From: Peter H. Hodge	Read Replies (1) \| Respond to of 7382

From what you said, TNTO, or you do not check in advance to see if they have shares to borrow, but you allow your traders to short a stock without shares in inventory. You are expecting shares will be available at settlement, and if you have none, you require the trader to cover. Am I correct so far? If that is the case, I guess you expect most of your trader/clients will get in and out of the position before the 3 day settlement period. And if they don't, they will be subject to the call. Would the calls only have gone out to those who shorted three days ago? What about those who initiated a position today? Thanks for your clarification.