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Re: trader59 post# 31891

Tuesday, 12/25/2018 11:00:47 PM

Tuesday, December 25, 2018 11:00:47 PM

Post# of 51814
Market makers have special exemptions from the rules: they are allowed to carry a naked short for up to twenty–one trading days before they have to borrow a share. When the share is not borrowed in the allotted time and a buy–in does not occur, and they rarely do, the naked short becomes a fail–to–deliver (of the borrowed share).