Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Piggy-Back Rule
A "piggyback qualified" security is one that meets the frequency-of-quotation requirement described in SEC Rule 15c2-11(f)(3). The frequency-of-quotation test or "piggyback" exception is based on whether a broker/dealer has itself published quotations in the security in the applicable interdealer quotation system on at least 12 business days during the preceding 30 calendar days, with not more than four consecutive business days without quotations. Once this criteria has been satisfied, authorized participants may register on-line in a security. As long as the security remains piggyback qualified, any participant may quote the security without a Form 211 submission.
http://www.pinksheets.com/glossary.jsp#piggyback
http://www.pinksheets.com/otcguide/issuers_getquoted.jsp
"Piggy back eligible securities are identified on pinksheets.com with the text "Piggyback Qualified" and on the OTC Dealer as "PBQ"."
http://www.pinksheets.com/otcguide/brokers_index.jsp
The 12 days was for the MM Glen to publish a "bid". It doesn't exactly mean a trade has to happen. I don't know if an unsolicited (customer) bid was published by them before the 14th when it resumed trading.
Assuming the 14th was the first day and it has traded on the greys 12 consecutive trading days, I believe HVLN will be eligible to go on the pinks Dec. 01.
This is only opinion.
The only indication of the -211 process is from the previous PR on 11/14/06 "The situation as it currently stands is as follows. We have found a market maker, Glendale Securities, who is willing to make a market in the stock while the somtimes time-consuming process of the 15C-211 is going."
Market Operations News
August 2, 2006
Market Operations News - Glendale Securities, Inc. Approved as a Market Maker
Effective July 31, 2006, Glendale Securities, Inc has been approved as a Market Maker.
The firm information is as follows:
Contact: George Castillo and Jose Abadin at 818-985-5600 ext. 202
Market Participant ID: GLEN
Here is the 211 process.
http://www.pinksheets.com/otcguide/issuers_getquoted.jsp
Question, will the dividend number of shares be limited to the legal float?
Not counting the restricted shares, lets say there is 3 Million float + 3 Million dividend. The 10 million short will double and have to fight to deliver the 3 million shares of dividend.
Can someone explain this better, what am I missing here ?
HVLN never was delisted. Delisting involves breaking the rules and getting whacked by the ruling bodies.
That never happened.
The pink sheets will soon begin subclassifying the pinks according to their transparency of their books and share structure.
Opinion
If people would read the process to get on the pinks they would understand there is a light at the end of the tunnel. I think it is only 7 more trading days until we are eligible for the pinks. The ones who can read and understand the process I think will be rewarded in the future. I have done the digging in the pinksheets.com website and am more confident this is ready to go Dec. 01.
Don't follow what I say, read it yourself and let me know what you think.
http://www.pinksheets.com/otcguide/issuers_getquoted.jsp#uns_quote
GLEN can only support customer orders and cannot buy or sell out of his own position. Since other MM's are also making a market you have to be in contact with the right MM to get filled.
"An unsolicited quote represents a customer order and not a market maker's own position and must be removed from the system once the customer order is executed. Compliance with this rule is monitored by the NASD."
http://www.pinksheets.com/otcguide/issuers_getquoted.jsp#uns_quote
[does the piggy back qualification require at least one MM file the 211??]
as stated on the pinksheets.com website
"As long as the security remains piggyback qualified, any participant may quote the security without a Form 211 submission."
http://www.pinksheets.com/otcguide/issuers_getquoted.jsp
The 211 is filed by a MM that sponsors the company. Assuming GLEN is the MM they would know how it is going and if it actually was filed. The 211 doesn't need to be filed if they are going the "piggyback" route. This way I am guessing the stock will hit the pinks on Dec. 01. I could be wrong but read my previous post for more info.
http://www.investorshub.com/boards/read_msg_ig.asp?message_id=14937837
Opinion
Piggyback Rule
According to my calculations we will be able to go on the pinks after 12 business days on the greys, Nov 30th will be the 12th business day (no turkey day). Provided the MM Glen sells the stock or publishes an unsolicited bid for 12 days in a row we will be eligible to trade Friday, Dec. 01, or sooner if "the somtimes time-consuming process of the 15C-211" is approved earlier.
Has anyone contacted Glen to see if they filed a 211 yet. It might get this stock trading sooner but they do not have to according to the piggyback rule.
Hey I found this on the pinksheets website.
Only one market maker is required for a security to be in the Pink Sheets; however, not all market makers are willing to file a Form 211. Many market makers will begin to quote a security after it becomes "piggyback qualified" and they can do so without filing the Form 211.
Piggy-Back Rule
A "piggyback qualified" security is one that meets the frequency-of-quotation requirement described in SEC Rule 15c2-11(f)(3). The frequency-of-quotation test or "piggyback" exception is based on whether a broker/dealer has itself published quotations in the security in the applicable interdealer quotation system on at least 12 business days during the preceding 30 calendar days, with not more than four consecutive business days without quotations. Once this criteria has been satisfied, authorized participants may register on-line in a security. As long as the security remains piggyback qualified, any participant may quote the security without a Form 211 submission.
http://www.pinksheets.com/otcguide/issuers_getquoted.jsp
According to my calculations we will be able to go on the pinks after 12 business days on the greys, Nov 30th will be the 12th business day (no turkey day). Provided the MM Glen sells the stock or publishes an unsolicited bid for 12 days in a row we will be eligible to trade Friday, Dec. 01, or sooner if "the somtimes time-consuming process of the 15C-211" is approved earlier.
When this resumes trading I think I will need a level 2 service. Are there any other L2 pink service besides Alphatrade ?
I don't want to be an advertiser but it looks like the only service I have seen here.
I have read the requirements and the SHO lists including non reporting companies but I have yet to find AWYB or HVLN on any threshold list.
How can there be such a large short position with no official documented knowlege of it.
Maybe the short people are keeping it secret by not reporting. Can someone shed light on this.
Hey this is good news, most of the E-trade people have been updated.
Is there anyone left who has not received their shares yet?
Now with the short positions there must be a pile of FTD's that need to cover.
Do pink sheet stocks ever show up on the Reg SHO list of threshold securities ?
Here is the answer: Threshold securities only include issuers registered or required to file reports with the Commission ("reporting companies").17 Therefore, securities of issuers that are not registered or required to file reports with the Commission, which includes the majority of issuers on the Pink Sheets,18 cannot be threshold securities. This is because the SROs need to look to the total outstanding shares of the issuer in order to calculate whether or not the securities meet the definition of a "threshold security." For non-reporting companies, reliable information on total outstanding shares is difficult to determine.
I wonder if HVLN would consider becoming a reporting company.
http://www.regsholist.com/
http://www.sec.gov/spotlight/keyregshoissues.htm
Opinion
Here is a list of posters who have not received their shares yet. Most are on Etrade. Those of you who are not on the list please add on.
dan8582
funseeker
reece
Greedfl
jiro40
cranberry71
NYorker2
DaFloorGuy
Outlawbabe
Sol
recolect
1chronicles410
Has anyone compiled a list of people who have not received their shares yet?
IRA shares supposedly are not lendable, but margin account shares are lendable for legal shorting.
Opinion
That one weird trade of 666 shares back on Oct. 27th. Hmmm
Currently Aturd is restricting purchases. Their commission structure ($9.99) probably prevents them from making any money on trading as it stands on the grey sheets. I just wonder when it hits the pinks if Aturd will then allow buying. Then if they still restrict purchases that would be a huge bone of contention where account holders may want to leave.
Opinion
Check some of the stocklobster posts, he had screenshots of the L2 back in the last week of October.
OT...the odds are 2 to 1 Mi- OSU
Instead of having a purchase order for 2500 shares try smaller round numbers like 1000 or 500 shares, it seems that an exact match of 2500 shares needs to be done the way you set it up, kinda like all or none. You could try calling your broker and asking if they can see the current ask sizes and prices. It looks like they will not execute partial fills.
IMO
Don't forget the Friday after turkey day with 3 furious hours.
I'm sitting on very dry powder...aturd
I'm showing 10,000 last price .385
fraud issues...can you say, cough (Naked Shorting) cough
Opinion
There were no buy orders allowed with the *turd crowd because they prefer to use their preferred MM's on the pink sheets (not trading there yet) and they will not trade on the gray sheets.
Opinion
Didn't you offer all of your shares at $5, maybe they want to be first in line.
Now Ameriturd says "Opening transactions for this security are not accepted" My purchase was open for a short time then this popped up.
Amtd is allowing purchases now. EOM
I have a sell 900 order at 2.39
You are correct the short interest is compiled on the 15th and reported this month on the 28th.
I think the official legal October short numbers will be published on the 15th. That may give ammunition for a PR from Don. I think the whole board is waiting for a bombshell announcement to commence trading, kinda like the Kentucky Derby.
I'm just here for the bud light.
25k here
I think it is Don waiting for all of the old certs to show up, then he will release the new certs.
IMO
AWYB or HVLN are not listed as a threshhold security from October 27 through Nov. 10.
Oh well
ftp://ftp.nasdaqtrader.com/symboldirectory/regsho
http://www.nasdaqtrader.com/aspx/regsho.aspx
The practice of naked short selling is encouraged by the Markets in thinly traded stocks and the purpose of a MM is to provide liquidity in a stock when there is short supply. Liquidity meaning they'll sell naked short into large buy orders to slow down a price jump hoping to supply shares later. Also on large sell orders they will buy to slow down downward pressure. If the risk of supplying later is too great there will be only MM's with actual shares in their pocket to sell on the ask.
Here is my guess: If the MM's know this stock is going up they will be very reluctant to naked short or provide any selling when their own neck is on the line...thus the ask on L2 will only show retail sales.
The 13 day rule may restrict their ability to naked short further. The walls above the stock price visable on L2 will not be there and the result may be a Hoover Dam breaking flood of buying and short covering frenzy.
IMO
Who knows what the outcome will be. ;)
Anyone awake tonight ? The 13 settlement days after October 27th according to my calculations are over November 15th. Naked short sales will then be restricted to anyone with FTD's past this date. It depends on if settlement day means when that particular stock is able to be traded. Also on Nov. 15th, October's legal short is published.
In My Opinion
This is from the SEC's website
http://www.sec.gov/spotlight/keyregshoissues.htm#P53_9258
"Regulation SHO requires brokers and dealers that are participants of a registered clearing agency8 to take action to "close-out" failure-to-deliver positions ("open fails") in threshold securities that have persisted for 13 consecutive settlement days.9" (footnote 9: Settlement day means any business day on which deliveries of securities and payments of money may be made through the facilities of a registered clearing agency.) "Closing out requires the broker or dealer to purchase securities of like kind and quantity. Until the position is closed out, the broker or dealer and any broker or dealer for which it clears transactions (for example, an introducing broker)10 may not effect further short sales in that threshold security without borrowing or entering into a bona fide agreement to borrow the security (known as the "pre-borrowing" requirement)."
Here's an excerpt from a DTCC article on naked shorts
There are literally dozens of reasons for a “fail to deliver,” and most of them are legal. Reg SHO also allows market makers to legally “naked short” shares in the course of their market making responsibilities, and those obviously result in fails. We can’t do anything about them but what we are doing: that is, report all fails of more than 10,000 shares in any issue to the marketplaces and the SEC for their action.
@dtcc: What happens then?
Thompson: The markets check to see if the amount of fails to deliver is more than 1/2 of 1% of the total outstanding shares in that security. If it is, then it goes on a “Threshold List.” If it is then on the Threshold List for 13 consecutive settlement days, restrictions on short selling then apply. The “close-out” requirement forces a participant of a registered clearing agency to close out any “fail to deliver” position in a threshold security that has remained for 13 consecutive settlement days by purchasing securities of like kind and quantity. If the participant does not take action to close out the open fail to deliver position, the participant is prohibited from making further short sales in that security without first borrowing or arranging to borrow the security. Even market makers are not exempt from this requirement.
http://www.dtcc.com/Publications/dtcc/mar05/naked_short_selling.html