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

To: jawd who wrote (106)	5/3/1998 8:04:00 PM
From: Ross	Read Replies (5) \| Respond to of 7382

I can not help but notice the rumor mill had been working overtime re:MBTraders covering KTEL shorts. Though MB Trading has always taken a position of allowing our clients and prospects to decide their comfort level of our service and posting unencombured, We believe that some facts should be disclosed re:KTEL from MB Trading. First MB Trading clears through Southwest, which at the time of the KTEL run up did have some stock available for shorting. As the stock increased in value those holders of KTEL long (yes actual long term investors) sold their shares. The shares, which were held in street name and are borrowed for shorting, dried up. The float of KTEL being what it was caused what many would believe to be a dramatic short squeeze. The KTEL float is and was public information. This is a risk of short selling any stock! Kramer of "The Street.com" has an excellent description of a short sell as well as the unfortunate risk and pain of a "buy-in". With regards to MB Trading forcing covers. I personally made the phone calls. I made 4 calls! When on the 3rd day of the KTEL ramp up (settlement date) we called our clients (per SW's demand)who were still short, all 6,000 shares I may add, and informed them of the situation. With regards to our forcing to cover rumor... all MBT clients receive a "Hard to borrow list" as well as instructions that any shorted stock must be verified before the close such that a firm borrow is in place in the event of a fiasco (upside run), ala KTEL, MARG, etc... MB Trading strives to give the utmost in customer support and service. Our procedures are such that our clients are fully advised of possible trading pitfalls before they become disastrous (which had we not had those clients cover, they would have been in) We strive daily to be the best, and thus far our clients have agreed. Lastly consider that Southwest Securities is a very large clearing firm. We are not Sw's only client. SW has thousands of clients and KTEL was not only shorted by our internet community but by traders all over the world both with accounts at SW and not. This is simply the mechanics of shorting. The stock IS NOT YOURS! This is and will always be the risk of trading stock YOU do not own nor is available for borrowing. Our hope is that the truth regarding KTEL and MB Trading spreads as fast as the inaccurate rumor which began this. Thank you for the opprotunity. Ross Ditlove MB Trading 888-790-4800