needdiamonds, I clearly defined that a "naked short" using 17a, must be covered to close TMM's old TA account and for the MM's to close-up shop on QBID. And, again, if there was a "naked short" issue, it was reconciled not only in compliance to 17a, but also in the destruction of the old QBID certs by the old TA and the issuance of new CPPC certs & new cusip#.
Do you understand that any sale, naked or not, must be brokered? The sale is in the books. 17a demands ALL POSITIONS, "long or short, & securities owned not readily marketable, and other investments owned not readily marketable , ie "NAKED", must be reconciled before those books can be balanced and closed.