Good Life China Corporation (GLCC)

[breezin_chs]

Mom, FTD's.

He who sells what isn't his'n
must buy it back or go to pris'n.
-- Attributed to Daniel Drew, 1797-1879

Lots of info around about Fails to Deliver.

Lawsuit connection: There's an email from IR about going after the parties involved who were responsible for wiping out $50M in the stock's value. The FTD's will very likely help the case. However, the lawsuit hasn't been PR'd yet.

This may help explain the 3210 designation:

We're not Reg SHO. We're NASD Rule 3210.

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

1. Regulation SHO defines threshold securities as ...

2. 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 (supposedly) 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