ZNext Mining Corporation, Inc (ZNXT)

[Jim Bishop]

C. Reasons Why A Security May Stay on a Threshold List for Longer Than 13 Consecutive Settlement Days
Even when broker-dealers close-out delivery failures, a security may remain on an SRO's threshold securities list for longer than 13 days. Examples of why securities may remain on the threshold securities list:


after broker-dealers close-out all delivery failures, the security stays on the threshold list for five consecutive days;


new delivery failures resulting from long or short sales may have crossed the threshold, keeping the security on the SRO's threshold securities list; or


the delivery failures at NSCC may have been established prior to a security's appearance on the SRO's threshold securities list, and are grandfathered from the close-out requirement of Regulation SHO.

For information about specific securities, contact the appropriate SRO or its market center listed above.



http://www.sec.gov/spotlight/keyregshoissues.htm