Wave Systems Corp. (fka WAVXQ)

[Fly Fisher]

Broker-dealer must close out a short sale of a specific....

Section 11830 of the NASD's Uniform Practice Code requires that a short seller's broker-dealer must close out a short sale of a specific security 10 days after normal settlement date if the client does not deliver the shares. Securities subject to close-out requirement are those with an aggregate "clearing" short position of 10,000 shares or more that equals or exceeds one half of one percent of the total shares outstanding. The NASD will identify these securities daily based on data from the DTCC and compile a "restricted list." Any subsequent short-sale transaction in a security on the list that is not completed by delivery of shares within the prescribed time frames will be subject to mandatory close-out if a "fail-to-deliver" situation exists 10 days after normal settlement date.

http://www.nasdaqtrader.com/aspx/regsho.aspx

FlyFisher - found this (of all places) on the "wahoo" board.