The other reforms in the proposal would eliminate the naked short issue as I understand it. Have you read the entire comment release or just the summary I posted? The intent of the SEC and indeed NASD is clear--they want to eliminate the certificate completely and move to an all-electonic system. Ultimately, it's inevitable, but there has to be enough safeguards to protect against abuses.
Also, bear in mind this is a comment release--a feeler if you will. They are soliciting commentary and are a long, long way from making any formal changes of this magnitude. I think that the comments, especially those from within the industry, should be very interesting.
