Instructions for those new to the Jail:
1) If you have gone to post and see the red alert saying "Your account has been suspended. You can only post to the Jail," then you are in the right place.
2) Check in here with me by posting a message to me (a REPLY to a post of mine).
3) Figure out what you did wrong (often, you already know).
4) Negotiate a deal and/or serve your time.
LOL...Just read the RIOT Act of yours for the first time in all its entirety. What the @(#)@*() do you mean by "negotiate a deal" and/or "serve your time" ?? You hustling for money or hustling for sex from the guys here? ;)
Anyhow...NOT one to waste a FREE meal --
SEC proposes short-selling rules
By Alistair Barr, MarketWatch
Last Update: 6:46 PM ET Jul 12, 2006
SAN FRANCISCO (MarketWatch) -- The Securities and Exchange Commission on Wednesday voted in favor of a proposal that would tighten rules governing short selling on increased controversy surrounding the trading strategy.
In a typical short sale, traders sell borrowed shares, and then if all goes according to plan, they buy them back at a lower price and return them to the lender. The difference is pocketed as profit.
A more aggressive form is naked shorting, in which a trader shorts a stock without first making necessary arrangements to borrow shares. That means the seller sometimes fails to deliver the stock to the buyer and the trade can't be settled.
Naked shorting is illegal in most cases, but market makers are allowed to take naked short positions to facilitate clients' trades.
The SEC introduced Regulation SHO at the beginning of 2005 to reduce the number of transactions in which the stock can't be delivered.
But some experts claim the regulation hasn't done enough to reduce so-called failures to deliver. Companies that claim to have been victims of naked shorting -- and class-action law firms representing them -- are also complaining. See full story.
Part of the SEC's original rule exempted "fails to deliver" that had occurred before Regulation SHO was introduced.
On Wednesday, the agency voted for a proposal to eliminate that grandfather provision, according to an SEC statement. The agency also proposed toughening up naked-shorting exemptions for options-market makers.
"Regulation SHO has achieved substantial results in reducing fails to deliver. However, some persistent fails to deliver remain," the SEC said in a statement. "The proposals are intended to reduce the level of fails to deliver attributable to the grandfather provision and the options-market maker exception."
The agency added that it's seeking comments on the proposed rule changes for 60 days.
Alistair Barr is a reporter for MarketWatch in San Francisco.
AI
