Bancorp International Group Inc (fka BCIT)

[MONEYMADE]

Reg SHO rule 35 days

After careful consideration of the comments, we are adopting amendments to eliminate the options market maker exception to Regulation SHO’s close-out requirement. Specifically, as a result of the amendments, all fails to deliver in a threshold security resulting from short sales by a registered options market maker effected to establish or maintain a hedge on options positions established before the security became a threshold security will, like all other fails to
63 Comment letters are available on the Commission’s Internet Web site at http://www.sec.gov/comments/s7-19-07/s71907.shtml.
64 See letter from Edward J. Joyce, President and Chief Operating Officer, Chicago Board Options Exchange, dated Aug. 15, 2008 (“CBOE 2008”).
65 See id.
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deliver in threshold securities, have to be closed out in accordance with the close-out requirements of Regulation SHO.66
The amendments include a one-time 35 consecutive settlement day phase-in period, as proposed.67 Under this provision of the amendments, any previously excepted fail to deliver position in a threshold security on the effective date of the amendments, including any adjustments to that fail to deliver position, must be closed out within 35 consecutive settlement days of the effective date of the amendments.68 We chose 35 settlement days because 35 days was used in Regulation SHO as adopted in August 2004, and in Regulation SHO, as amended.69