Geezer, perhaps you missed the Point...
and I am glad I discussed this matter at length with a NASDAQ Officer... I know that the "uptick" Rule doesn't apply to the OTCBB market and that stocks trading below $5.00 cannot be shorted - in theory - because they're non marginable...
Of course, we both know that the larger shorters use their friendly MM account directly to "naked short" and that few of the Rules are respected by the rogue MM's...
Here is Rule 3350(a)(3), for instance:
Similarly, bona fide market making would exclude activity that is related to speculative selling strategies of the member or investment decisions of the firm and is disproportionate to the usual market making patterns or practices of the member in that security. The Association does not anticipate that a firm could properly take advantage of its market maker exemption to effectuate such speculative or investment short selling decisions. Disproportionate short selling in a market making account to effectuate such strategies will be viewed by the Association as inappropriate activity that does not represent bona fide market making and would therefore be in violation of Rule 3350.
Are you trying to tell me, with regards to OTCBB stocks, that:
bona fide market making would include activity that is related to speculative selling strategies of the member or investment decisions of the firm and is disproportionate to the usual market making patterns or practices of the member in that security.
The Association anticipates that a firm could properly take advantage of its market maker exemption to effectuate such speculative or investment short selling decisions. Disproportionate short selling in a market making account to effectuate such strategies will be viewed by the Association as appropriate activity that represents bona fide market making and would therefore Not be in violation of Rule 3350.
If you really think the foregoing is allowed for OTCBB stocks, I suggest you call NASD/SEC and ask them about the complaints recently made against certain MM's violating such Rules and what is being done about it...
JMHO, F. Goelo + + +
