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To: DJ Byrne who wrote (2819)	5/15/1998 2:41:00 PM
From: Mr. Dendro	Respond to of 6528

I too would hope that the MMs are forced to deliver certificated shares upon demand. Unfortunately, I'm still unsure where the burden falls when a certificate request is made. My feeling based on what little research I've done (I'm not a securities lawyer either) is that there is a lot of "wriggle room" in the mechanisms which MAY allow MMs to avoid turning over certificates, or at least give them some breathing room. I wish I understood the process better, but a lot of it appears to be regulated not by the SEC so much as by the NASD.

To: DJ Byrne who wrote (2819)	5/15/1998 2:47:00 PM
From: TraderGreg	Respond to of 6528

Unlike cars, stereos, and jewelry, the one redeeming thing out of all of this is that the person buying shares from a naked shorter is still the Legitimate owner of those shares. Kind of a reverse caveat emptor. What would that be "caveat vendor"? If the shorter doesn't cover within three days, they beg and usually get an extension. When they run out of stall tactics, the brokerage will liquidate any longs in the account to cover for them. This is where I'm a little fuzzy. If short slime isn't liquid enough, I think the brokerage eats it and if it is so severe that the brokerage goes under, I think, but am not sure, that SIPC may come in. The detailed mechanics are irrelevant. The buyer of the naked/illegal/whatever you want to call it short is still a legal owner of those shares and will, someday, get their certs. TG