Flexpower Inc. (FLXP)

[breezin_chs]

WillyBoy, you scared me for a sec, thinking that somehow the SEC reverted to the old rule under the radar. However, not to worry.

SEC rule ... "threshold securities" only. EFGO, however, does not seem to meet that definition ... a "reporting" company. My question is, why does the removal of this exemption effect EFGO?

You were looking at an old page from 2005 which the SEC should have removed or edited.

NASD Rule 3210, which became effective July 3, 2006,applies the Regulation SHO close-out requirements to non-reporting OTC equity securities.

Since "reliable outstanding share information in not universally available for non-SEC reporting issuers", the SEC had to figure out a different way to detect the FTD's.

So, two classifications.
http://www.pinksheets.com/pink/marketactivity/reg_sho_list.jsp

Regulation SHO defines threshold securities as ...

FINRA Rule 3210 defines threshold securities as any equity security of an issuer that is not an SEC reporting security and, for five consecutive settlement days, has:

-> aggregate fails to deliver at a registered clearing agency of 10,000 shares or more; and

-> a reported last sale during normal market hours (9:30 a.m. to 4 p.m., ET) for the security on that settlement day that would value the aggregate fail to deliver position at $50,000 or more.

A security ceases to be a threshold security if it does not exceed the specified level of fails for five consecutive settlement days.

As it should be, the MM's and brokers now have the responsibility to find real shares instead of counterfeit shares, or else they're prohibited from trading the security.

"If the fail is not closed out in the requisite time period, the participant, and any broker-dealer for which it clears, may not effect further short sales in the security without first borrowing or entering into a bona-fide arrangement to borrow it (the “pre-borrow requirement”)."

The Threshold Security List is published daily and you'll see a separate column to the right - Rule 3210 - for non-reporting issues.
http://www.nasdaqtrader.com/aspx/regsho.aspx

Fortunately EFGO isn't on the list.

GLTA