NanoTech Entertainment Inc (NTEK)

[Suretrader]

Anyone who's short, please be careful. Possibly this week if a PR drops with an important catalyst, it could hurt you very bad financially, specifically those who have failed to deliver your positions... I am not kidding, I am very serious. I seen it before, and heard of hedge funds going bankrupt for getting caught with way too many open short positions. I suggest you to cover before the big news hit. We are getting very close to some of those catalysts and you have failed to deliver your positions. If dividends get announced which is an upcoming catalyst and you failed to deliver the position, you will be required to pay for that dividend. Retailers will be announced shortly from here, information about current sales, and many other. You have at the latest 7 days to deliver .5% of total outstanding, which is over 2.6 Million shares. No one is selling into the bid, you could get trapped and will hurt you. Good luck and be smart about it.

Symbol Security Name Venue Reg SHO Threshold Flag Rule 4320 Flag

NTEK NANOTECH ENTERTAINMENT, INC. OTC Link Yes No


http://www.otcmarkets.com/market-activity/reg-sho-otc


-----------------------------------------

III. Regulation SHO

Compliance with Regulation SHO began on January 3, 2005. Regulation SHO was adopted to update short sale regulation in light of numerous market developments since short sale regulation was first adopted in 1938. Some of the goals of Regulation SHO include:

Establishing uniform "locate" and "close-out" requirements in order to address problems associated with failures to deliver, including potentially abusive "naked" short selling.
Locate Requirement: Regulation SHO requires a broker-dealer to have reasonable grounds to believe that the security can be borrowed so that it can be delivered on the date delivery is due before effecting a short sale order in any equity security.6 This "locate" must be made and documented prior to effecting the short sale.
"Close-out" Requirement: Regulation SHO imposes additional delivery requirements on broker-dealers for securities in which there are a relatively substantial number of extended delivery failures at a registered clearing agency7 ("threshold securities"). For instance, with limited exception, 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 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).
Temporarily suspending Commission and SRO11 short sale price tests12 in a group of securities to evaluate the overall effectiveness and necessity of such restrictions. The Commission will study the impact of relaxing the price tests for a period of one year.13
Creating uniform order marking requirements for sales of all equity securities. This means that orders you place with your broker-dealer must be marked "long," "short," or "short exempt."14
IV. Threshold Securities

A. The Basics

1. What is a Threshold Security?

Threshold securities are equity securities that have an aggregate fail to deliver position for:

five consecutive settlement days at a registered clearing agency (e.g., National Securities Clearing Corporation (NSCC));15
totaling 10,000 shares or more; and
equal to at least 0.5% of the issuer's total shares outstanding.16
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.

2. Who is Responsible for Identifying Threshold Securities?

Regulation SHO requires the SROs to disseminate a daily list of threshold securities where such SRO, or its market center,19 is the primary listing venue for any such security.

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