World Surveillance Group Inc (fka WSGI)

[Sanswired]

Anyone care to guess as to why they need to attack our company? Here's my guess.

Reg 2006-18 Rulings
Regulation SHO: Deadline for Compliance With New Methodology for Closing Out Fail to Deliver Positions in "Threshold Securities"

In Amex Notice 2006-13, members and member firms were advised of a recently released interpretation by the Securities and Exchange Commission ("SEC") regarding the requirements for a clearing agency participant in applying any reduction in its end of day fail to deliver position at NSCC in a Regulation SHO "threshold security" against the participant's open fail position(s) in that security. That interpretation was provided as the response to Question 5.8 in the notice entitled "Division of Market Regulation: Responses to Frequently Asked Questions Concerning Regulation SHO" that is accessible on the SEC's website at: www.sec.gov/spotlight/shortsales.htm.
Please note that the above referenced Q&A 5.8 was published on the SEC website on March 17, 2006. We expect that all member firms will fully implement the methodology set forth in this Q&A by May 1, 2006. As of that date, the new requirements must be applied to all open fail to deliver positions that then exist and to fail positions that are subsequently created. Furthermore, clearing firms that have already made the necessary system changes to facilitate full compliance with these new requirements should continue to adhere to those new requirements.

Finally, we call the attention of members and member firms to the requirement that the closeout of an open fail position in a "threshold security" that is approaching the limit of 13 consecutive settlement days may only be accomplished by a bona fide purchase on day 11, 12 or 13 of the failure, and not by borrowing the security on those days to cover the fail position. (See the SEC's response to Question 5.7 in the notice referenced in the first paragraph above.)

Questions regarding the above may be directed to Bill Richard in the Amex Division of Regulation & Compliance at [phone] or to Bill Love in the Amex Office of General Counsel at [phone].

http://www.amex.com/amextrader/?href=/amextrader/tdrInfo/data/axNotices/2006/reg041106.html