KCG Holdings (KCG)

[ICEQUITY]

Who gets to short NITE? Who gets to short pennies?

Ameritrade and Scottrade I believe have no shorting under $5 limit.
I found this that might help

Anyone can short pennies...but for the average trader, the cost is "prohibitive"- the margin requirements.

For example at the broker that I use, you have to have $2.50 margin per share to short a stock under $2.50. So if you short 1000 shares of a stock at $2, you have to have $2,500 in your account ($2.50 x 1000).

If you want to short 1million shares of a stock at .0001, you have to have $2.5mllion in your account, and 1million shares at .0001 is only $100.

So it wouldn't make sense to do. The bright side is that if you do short something down there, you won't get a margin call unless it exceed $2.50, which isn't very likely for a .0001 stock.

But again, you'd never short $100 worth of a penny stock if you had $2.5 mil in your account. Or would you? Knight Capital would know

Market Makers borrow shares from Brokerages, then short the stock. Is it legal? Roger O.Rinney seems to think so.

Rodger O. Riney (60), Director of the Company, has served on the Board of the Company since the Company's initial public offering and, before that, as an advisory board member of Roundtable since March 1995. He is the President... +more
Organization Position Status

Scottrade, Inc. Founder, President, Chief Executive Officer Current
Knight Trading Group, Inc. President Current
Knight Trading Group, Inc. Board of Directors Current
Edward Jones General Partner Former

I don't agree with it either, thats why I started the Ihub Finra Board, Educational. Nothing Is Ever Off Topic

ICESHO'ThinkTank
TT

brotheredfish, 129M Float 130M O/S...thanks, wow O/S is float. Which means 99% of shares outstanding are available to the public,for both short and long.

Shares Float 129,847,737
Total Shares Outstanding 130,378,272
% Owned by Insiders 0.60 %
% Owned by Institutions 84.70 %
Market Cap. $ 114,732,879
Trading Volume - Today 12,762,011
Trading Volume - Average 460,800
Trading Volume - Today vs. Average 2769.53 %
Earnings Per Share -5.12
PE Ratio
Record Date 2010-FebB

2009 VSTNQ Top 4 Market Makers Traded Over 500M in YTD Volume
NITE
Knight Equity Markets, L.P. 182,846,633

ETMM
E*Trade Capital Markets Llc 102,014,933

ABLE
Natixis Bleichroeder LLC 135,202,902

HDSN
Hudson Securities, Inc. 106,457,403


http://www.otcbb.com/asp/tradeact_mv.asp?SearchBy=issue&Issue=VSTNQ&SortBy=volume&Month=12-1-2009&IMAGE1.x=28&IMAGE1.y=7


JAN 2010 VSTNQ Total Share Volume 75,756,509
FEB 2010 VSTNQ Total Share Volume 75,663,829

As of FEB 2010 YTD VSTNQ 151,420,338
Total Shares Outstanding 130,378,272?

Please leave me a mark, and visit the new board if you find this info helpful.

Peace