Avid Bioservices Inc (CDMO): Very interesting comments CP. Are you s...

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skweze

Re: Protector post# 180753

Monday, 06/23/2014 10:24:27 AM

Monday, June 23, 2014 10:24:27 AM

Very interesting comments CP. Are you saying that MMs are NOT exempt from regulations that prohibit naked shorting? I thought that the MMs could short without locating shares if it was in connection with a "bona-fide" market making activity.

Naked shorting is a problem, BUT that is circumvented because intra day it doesn't matter (the position is opened and closes in the main session so that is illegal and only visible to the SEC's new software who can correlate T&S with clearing (which they could not before). And you can not have 1Milj shares traded and only 750K cleared.

Overnight naked shorts is technically possible but then you need at least one broker holding the role of prime broker to cheat (and risk prison). But for the voting then would have to be done on a SPECIFIC day (I think for PPHM it is 15th of August) and it would therefore be easy to visit the log and focus on 14/15/16 of August. If there is a discrepancy it cannot be hidden.