Cal-Bay International Inc (CBYI)

[stervc]

Phisherman, with your Reg SHO thoughts...

Thanks for keeping us on track here. Heck, your thoughts made me go back and do some further research. Hopefully this below makes it clearer for everyone. Some of it is a repeat from your DD, but with links.

http://www.nasdaqtrader.com/trader/news/2007/regulatoryalerts/ra2007-086.stm
The Securities and Exchange Commission (SEC) has amended Regulation SHO to eliminate the “grandfather provision” and will take effect on October 15, 2007.

SEC Regulation SHO sets out rules governing short sales, including the mandatory close-out requirement that applies to securities in which a substantial amount of fails to deliver have occurred (“threshold securities”). Clearing agency participants and broker-dealers for which they clear positions (“participants”) must take immediate action to close out a fail to deliver position in a Threshold Security that has lasted for 13 consecutive settlement days by purchasing securities of like kind and quantity (“close-out requirement”).

The amendment eliminates one of the exceptions to the Close-out Requirement for fails to deliver established prior to a security becoming a Threshold Security (“grandfather provision”). The amendment requires Participants to close out any previously-grandfathered fails to deliver in a security that is on the Threshold Security List on October 15th. The close-out must occur within 35 consecutive settlement days of October 15th. If a security becomes a Threshold Security after October 15th, all fails to deliver must be closed out within 13 consecutive settlement days.

Regulation SHO Threshold Security List
http://www.nasdaqtrader.com/aspx/regsho.aspx

Actual Regulation SHO Amendment
http://a257.g.akamaitech.net/7/257/2422/01jan20071800/edocket.access.gpo.gov/2007/pdf/E7-15708.pdf

I'm a little rusty, but I think that since CBAY had their securities deregistered with the SEC a while back when they filed that Form 15 under Rule 15-12G, they will not be tracked for determining if they are a threshold security or not, just yet.

I am expecting that more filings will come out to make CBAY fully reporting again.

v/r
Sterling