That's my point, Carpe...
I guess I should have made myself clear. IMO we are getting to the point where the naked short MM's will see this is a losing battle, and the ex-clearing shenanigans would start to wane. When less and less MM's feel this is an easy naked short, that so-called "cooperation" will vanish. When the cooperation goes away, IMO there will be many naked shares which can't be shuffled around anymore. That is when you will start to see significant FTD's.
So, if you're saying that naked short shares cannot create FTD's, I think you're mistaken. If you're referring to the ability of the MM's to trade their shares to hide their NSS, then I agree.
