Thank You, That was all very insightful and helpful.
I think the best line in the SIFMA letter was:
This conclusion is consistent with the SEC’s own reported enforcement actions, i.e., any reported instances of
“short-side” manipulation (e.g., “short and distort” campaigns) are dwarfed by the instances of
“long-side” manipulation (e.g., “pump and dumps”).
I see the pump and dumps weekly as some tiny stock goes up 500+% overnight and in the early morning (FOMO) and then sells off and is back down 80% to 90% the next day.
I can see why SIFMA as a representative organization may be against some of the new reporting rules, and I would be ok with the institutions NOT having to disseminate their short positions to the public as long as they MUST report them to the SEC in a timely matter.
I don't have a problem with shorting. If you are allowed to bet that a stock will go up, you should also be allowed to bet that a stock will go down. Of course you can also do that and both with options.
On the naked short selling, I don't see why they can't just do something simple, forget about the "I will get it in the future to cover" or "I am required to get it in the future" and just go with "If you don't own it, you can't short it".
Or at least go with, "you MUST PROVE that you bought it in 3 or 5 days or your short order get canceled and closed.
Thank You again
