does anyone know the latest on the amount of shorting on this , and here is the latest on SEC SHO regulation: WASHINGTON (Dow Jones)--The Securities and Exchange Commission voted Wednesday [today] to approve a change to tighten rules intended to curb manipulative short sales,including so-called "naked" short sales.
The change eliminates a controversial exception that shielded existing short positions from requirements to deliver hard-to-borrow shares within 13 days of settlement. Once the change takes effect, short positions previously protected by
the grandfather clause must be closed out within 35 days.
SEC Chairman Christopher Cox said persistent failures to deliver shares sold short seem to be due to the grandfather protections, which the SEC included in 2004 to prevent stock-market volatility. Critics complained the protections undermined efforts to clean up abuses involving "naked" short sales.
Short selling involves sales of borrowed securities, producing profits when prices decline. The practice is legal, but the SEC's Regulation SHO sought to prevent "naked" short sales, in which short sellers don't borrow securities they sell.
SEC officials said delivery failures have declined about 35% overall since Regulation SHO took effect and have fallen about 53% for hard-to-borrow stocks defined as "threshold" securities.
-By Judith Burns, Dow Jones Newswires, 202-862-6692; Judith.Burns@dowjones.com
PATIENCE & TOLERANCE brings PEACE & SERENITY
