New NSS Rules
U.S. Securities and Exchange Commission
Proposed Rule:
Short Sales
Securities and Exchange Commission
17 CFR PARTS 240 and 242
[Release No. 34-48709; File No. S7-23-03]
RIN 3235-AJ00
SEC gathered comments on implementing new rules regarding Naked Shorting by Jan. 5,
2004.
"The proposed rule would specify that for short sales of any security meeting this threshold, the
selling broker-dealer must deliver the security no later than two days after the settlement date."
Naked short sellers typically did not deliver the security or pressed the price down to get a
discount from the market price of the security at the time of the debenture conversion. These
illegal activities have been a common exercise conducted by certain brokers, not by retail
investors.
In section II, they acknowledged the presence of naked short sellers who committed crimes
especially on OTC.BB stocks. These criminal activities orchestrated by so-called bashers on
bulletin boards; Yahoo, Stockhouse, Raging Bull Boards using off-shore accounts.
Prior to implementation of rules, there will be unexpected uprise of share prices in many
OTC.BB stocks.
When governments fear the people there is liberty. When the people fear the government there is tyranny.
-Thomas Jefferson
AI
