1812 Brewing Company Inc (KEGS)

[gitonwithit]

NSS - DTCC

Hey everyone, I saw someone mention the DTCC and I thought I would post these links, pretty interesting reading.

Pretty much an SHO designation does nothing to force the NSS to close, it only prevents more shorting until shares are available to borrow (which I take to mean that a NSS position can last indefinitely at the moment).

This excerpt from the first link:

"Thompson: The markets check to see if the amount of fails to deliver is more than 1/2 of 1% of the total outstanding shares in that security. If it is, then it goes on a Threshold List. If it is then on the Threshold List for 13 consecutive settlement days, restrictions on short selling then apply. The close-out requirement forces a participant of a registered clearing agency to close out any fail to deliver position in a threshold security that has remained for 13 consecutive settlement days by purchasing securities of like kind and quantity. If the participant does not take action to close out the open fail to deliver position, the participant is prohibited from making further short sales in that security without first borrowing or arranging to borrow the security. Even market makers are not exempt from this requirement.

@dtcc: So Reg SHO doesnt force them to close out the position, but if they don't, they are prohibited from making any additional short sales without borrowing the shares first?

Thompson: That's right."

http://www.dtcc.com/news/newsletters/dtcc/2005/mar/naked_short_selling.php

This about public trade failure data.

http://www.dtcc.com/news/press/releases/2007/trade_failure_data.php