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Friday, January 15, 2010 10:04:35 AM
VIOLATION OF RULE 612 , Regulation SHO
By the BROKER/ DEALERS & MARKET MAKERS of..... Health Sciences Group, Inc.
HESG BUYS are being listed as SELLS. We marked $HESG shares with 420 additional shares to buys to prove the manipulation. These are examples of the type of manipulation that happens everyday. This ordered was set to limit buy for 1420 HESG shares at market open on 01/11/10. It was a limit buy at .0005 purchase was executed at .00049...... but displayed as a sell @.0004 instead of a buy. $READ POST #54524 HESG 420
In which case violates SEC rule 612 by the price extending beyond four decimal places.
There are many others that this happen too, $HESG Shareholders please attach your comments to this link with your evidence to support the truth.
$HESG Broker/Dealers & Market Makers NON COMPLIANCE TO SEC RULES & REGULATIONS.
Rule 612 Multiple Violations Regarding (Minimum Pricing Increment)
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=45382780
What is Regulation SHO? NON COMPLIANCE OF REGULATION SHO
BY HESG BROKER/ DEALERS & MARKET MAKERS
Short sale locate has been in effect for years under NASD and NYSE rules, but compliance has been uneven. In fact, NYSE started bringing actions against firms just before SHO was released, and decided to wait until the Regulation was released.
Reg SHO is in effect right now and is a warning that locates will be a subject to a much greater enforcement next year. (1/3/05)
Most suppliers today have Service Level Agreements (SLAs) with their counterparties (customers) to perform “the locate” on their behalf either internally or with a pre-defined list of approved brokers.
The regulation requires that prior to entering a short sale order, a firm must have reasonable grounds to believe that the security can be borrowed. Further, this determination must be documented and identify the source of the loan/custody. Therefore, the Yes/No tag for locates is no longer sufficient. Institutions sending their short sale orders to brokers will need to include locate information as part of the order. There are two ways to accomplish this: either by including a locate reference number (which would identify both the broker and include a method of tracing the underlying loan) or by simply designating the broker lending the securities.
Absent receiving locate broker information from its clients, a broker will be required to perform “a locate” on short sells itself, even where the institution has already obtained a borrow from another prime broker. If a security is "hard to borrow", then these orders will either be rejected by the broker (even though the institution has made arrangements to borrow the security) or will force the broker to borrow the security which might result in additional charges for the institution. Clearly, this becomes an issue for the institution.
Scope of Sub-Penny Rule Compliance
VIOLATION OF RULES BY HESG BROKER/ DEALERS & MARKET MAKERS
![](http://cannabis-invest.googlegroups.com/web/HESG%20proof%20of%20maniuplation%20via%20completed%20order%20and%20lvl2.jpg?gda=dqHVw44AAAAOQrVQ6rRuQ6kf9E_ooqO0qKiqUNONSm6wI3vaXLdxFFaliIbMz_xc46E4NpOuH_nAuhCIyFA99bMSgvfpqG2DFFdi3h0ZGk3T6ZtJc2myZU7eI2iC2hrpmN0Rv5oYbcIYcErSBOO8Lh7Zj3Qr8rMlaSHq16qmEHqmXAYZH_H1E-OwpdWz5ftt1dlzlu5J-bE)
According to the SEC filing: "New Rule 612 prohibits an exchange, association, vendor, ATS, or broker-dealer from accepting, ranking, or displaying an order, quotation, or indication of interest in an NMS stock priced in a sub-penny increment (except for an order, quotation, or indication of interest priced less than $1.00 per share, in which case the price may not extend beyond four decimal places)."
[url]http://cannabis-invest.googlegroups.com/web/HESG-ShortSale-2.mov?gda=k-GrgkcAAAAOQrVQ6rRuQ6kf9E_ooqO0ZDN2YPcdSUzNL3Y-qLOTv1xaNR1s5Ecs36FC1C9vhWPyacT06kUyFh0DQX4xxwuJeV4duv6pDMGhhhZdjQlNAw&gsc=AcNgnRYAAAAeizyki7wJ9nSponIU-e69GoGK_5p_OafYrMU8tWhKsg
[/url][tag]HESG Manipulation Video Clip[/tag]
$HESG BROKER/DEALER VIOLATIONS
NON COMPLIANCE OF NEW RULE 612
What Does Breaking Rule 612 -PRICE MAY NOT EXTEND BEYOND FOUR DECIMAL PLACES
GAINS FOR MARKET MAKERS WITH PRICES EXTEND ONE DIGIT .00001
Estimated Market Cap
$880,000
as of Jan 14, 2010
Outstanding Shares/ Outstanding shares increases due to an increase in "float" Shares
2,200,000,000
as of Mar 9, 2009
x.0001 = $220,000
x.00001= $22,000 $200,000 Price Difference By 1 DIGIT On 2.2 Billion Shares
Authorized Share/ Are restricted shares held by the insiders, plus the "float"
5,000,000,000
as of Mar 9, 2009
x.0001 =$500,000
x.00001= $50,000- $450,000 Price Difference By 1 DIGIT On 5. Billion Shares
Float(shares) / The shares owned by the public represent the "float."
600,000,000
as of Mar 9, 2009
x.0001 = $60,000
x.00001 = $6000-$54,000 Price Difference By 1 DIGIT On 600 Million Shares
Manipulation of One Digit in Price... Can cost share holders a pretty penny.
What is the difference in price if you bought all the shares of HESG traded available to the public?
For example a one digit change in the float in March 2009, can equal to $6000@.00001 vs $60,000@.0001 to purchase all the shares traded by the public.
HIGHLIGHTS TO VIOLATIONS OF HESG SHAREHOLDERS
Bernard L. Madoff Investment Securities LLC Makes Suggestions To Improve Rule 612
"Sell short to fill a customer market or marketable limit buy order at a price lower than by a sub-penny increment in order to provide price improvement."broker-dealer may convert the price to U.S. dollars, rounding appropriately (down in the case of an order to buy, and up in the case of an order to sell) to an allowable price increment. Price may not extend beyond four decimal places, is not allowable price increment If the broker-dealer employs a vendor or facility manager to provide its order handling capabilities, then the vendor or facility manager must follow the requirements of the Rule, or the broker-dealer will not be in compliance all short sales effected pursuant to the exemption must be marked as "short exempt" in accordance with Rule 200(g) of Regulation SHO.
Division of Market Regulation:?Responses to Frequently Asked Questions Concerning Rule 612 (Minimum Pricing Increment) of Regulation NMS
Responses to these frequently asked questions were prepared by and represent the views of the staff of the Division of Market Regulation ("Staff"). They are not rules, regulations, or statements of the Securities and Exchange Commission ("Commission"). Further, the Commission has neither approved nor disapproved these interpretive answers.
For Further Information Contact: Michael Gaw, Assistant Director, at (202) 551-5602, Division of Market Regulation, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549-6628.
I. Introduction
On April 6, 2005, the Commission adopted Regulation NMS, a series of initiatives designed to modernize and strengthen the national market system for equity securities. Regulation NMS was published in Securities Exchange Act Release No. 51808 (Jun. 9, 2005), 70 FR 37496 (Jun. 29, 2005) ("NMS Release"). One part of Regulation NMS is Rule 612 ("the Rule"), which specifies minimum pricing increments for NMS stocks. In general, the Rule prohibits market participants from displaying, ranking, or accepting quotations, orders, or indications of interest in any NMS stock priced in an increment smaller than $0.01 if the quotation, order, or indication of interest is priced equal to or greater than $1.00 per share. If the quotation, order, or indication of interest is priced less than $1.00 per share, the $minimum pricing increment is $0.0001. The Commission has extended the initial compliance date for the Rule from August 29, 2005 until January 31, 2006 in Securities Exchange Act Release No. 52196 (Aug. 2, 2005), 70 FR 45529 (Aug. 8, 2005).
An exemption from Rule 10a-1's tick test permits registered market makers and exchange specialists publishing two-sided quotes in a security to sell short to facilitate customer market and marketable limit buy orders at the consolidated national best offer (NBO), regardless of the last trade price.
See Letter re: Bernard L. Madoff Investment Securities LLC (February 9, 2001).) Can such a registered market maker or exchange specialist sell short to fill a customer market or marketable limit buy order at a price lower than the NBO by a sub-penny increment in order to provide price improvement? For example, can a registered market maker or exchange specialist execute a short sale at $0.129 (providing price improvement) to facilitate a customer market or marketable limit buy order if the NBO is $0.13?
The exemption provides relief from Rule 10a-1's tick test to permit registered market makers and exchange specialists publishing two-sided quotes in a security to sell short to facilitate customer market and marketable limit orders at the consolidated national best offer, regardless of the last trade price. If the NBO is $0.13, as in the example above, then the registered market maker or exchange specialist may execute a short sale to fill a customer market or marketable limit buy order at $0.129 or any other increment within a sub-penny below the NBO, regardless of the last sale price reported pursuant to an effective transaction reporting plan, and still be considered within the exemption. This exemption continues to be strictly limited to registered market makers and exchange specialists in instances where they are providing liquidity in response to customer market and marketable limit buy orders. In addition, all short sales effected pursuant to the exemption must be marked as "short exempt" in accordance with Rule 200(g) of Regulation SHO.
If a customer gives an order in an NMS stock to a broker-dealer that is not explicitly priced in an impermissible sub-penny increment but involves instructions or information intended to permit the broker-dealer to determine an explicit price, may the broker-dealer accept the order and determine the appropriate explicit price, rounding if necessary to a permissible increment?
Answer: Yes. The Rule does not prohibit a broker-dealer from performing calculations to obtain the price of a customer order that is not explicitly priced in an impermissible sub-penny increment when received. For example, if an order is originally priced in a foreign currency, a broker-dealer may convert the price to U.S. dollars, rounding appropriately (down in the case of an order to buy, and up in the case of an order to sell) to an allowable price increment. Other examples would include an order with a price dependent on the price of another security, an order priced at the previous day's closing price, or an order with a specified percentage variation from the current price of the security (e.g., a "stop price" set at 10% above or below the current price). In each case a broker-dealer would be permitted to determine the actual explicit price for the order, rounding appropriately.
If a broker-dealer uses a service bureau or other vendor to provide order handling services on its behalf, does the vendor have to provide the same capabilities to reject or round orders that the broker-dealer would have to provide for itself, or can it rely on the market centers to reject and/or round orders not permitted under the Rule?
The obligation to comply with the Rule lies with the broker-dealer. If the broker-dealer employs a vendor or facility manager to provide its order handling capabilities, then the vendor or facility manager must follow the requirements of the Rule, or the broker-dealer will not be in compliance.
An exemption from Rule 10a-1's tick test permits registered market makers and exchange specialists publishing two-sided quotes in a security to sell short to facilitate customer market and marketable limit buy orders at the consolidated national best offer (NBO), regardless of the last trade price. (See Letter re: Bernard L. Madoff Investment Securities LLC (February 9, 2001).) Can such a registered market maker or exchange specialist sell short to fill a customer market or marketable limit buy order at a price lower than the NBO by a sub-penny increment in order to provide price improvement? For example, can a registered market maker or exchange specialist execute a short sale at $0.129 (providing price improvement) to facilitate a customer market or marketable limit buy order if the NBO is $0.13?
The exemption provides relief from Rule 10a-1's tick test to permit registered market makers and exchange specialists publishing two-sided quotes in a security to sell short to facilitate customer market and marketable limit orders at the consolidated national best offer, regardless of the last trade price. If the NBO is $0.13, as in the example above, then the registered market maker or exchange specialist may execute a short sale to fill a customer market or marketable limit buy order at $0.129 or any other increment within a sub-penny below the NBO, regardless of the last sale price reported pursuant to an effective transaction reporting plan, and still be considered within the exemption. This exemption continues to be strictly limited to registered market makers and exchange specialists in instances where they are providing liquidity in response to customer market and marketable limit buy orders. In addition, all short sales effected pursuant to the exemption must be marked as "short exempt" in accordance with Rule 200(g) of Regulation SHO.
$SEC Center for Complaints and Enforcement Tips
Through this page you can file a complaint or provide us with tips on potential securities law violations. We welcome hearing from you because your information may alert us to a bad broker or firm, an unfair practice in the securities industry that needs to be changed, or the latest fraud.
If you do not want to communicate electronically, either print and fill out a form or write us a letter. Our address is: $SEC Complaint Center, 100 F Street NE, Washington, D.C. 20549-0213. You can also send a fax to 703-813-6965.
All of these Market Makers traded $HESG volume in 2009,
As of November these were the current figures, December they fail to even list YTD traded $HESG Volume. Accumulated YTD volume missing and unaccounted for in Monthly OTCBB report .
3,141,022,322
SHARES FROM $ETMM YTD NOT REPORTED
1,282,495,369
SHARES FROM $AUTO YTD NOT REPORTED
75,940,000
SHARES FROM $ARCA YTD NOT REPORTED
77,642,730
SHARES FROM $VFIN YTD NOT REPORTED
20,514,501
SHARES FROM $FANC YTD NOT REPORTED
18,600,000
SHARES FROM $MERQ YTD NOT REPORTED
HESG PHANTOM SHARES ARE GONE FISHING
$DEC. 2009 HESG SHARE VOLUME DATA REPORT
http://www.otcbb.com/asp/tradeact_mv.asp?SearchBy=issue&Issue=hesg&SortBy=volume&Month=12-1-2009&IMAGE1.x=17&IMAGE1.y=6
$NOV. 2009 HESG SHARE VOLUME DATA REPORT
http://www.otcbb.com/asp/tradeact_mv.asp?SearchBy=issue&Issue=hesg&SortBy=volume&Month=11-1-2009&IMAGE1.x=17&IMAGE1.y=6
Truth & Transparency Will Prevail
† h i n k f i s h
Many of the HESG Shareholders are to thank for all of this collective information. They continue to fight the good fight, when nobody else will. http://stockschitchat.com
http://www.sec.gov/divisions/marketreg/subpenny612faq.htm#q1
http://www.fixprotocol.org/pages/3225/What%20is%20Regulation%20SHO.htm
http://www.fixprotocol.org/pages/3196/Scope%20of%20Sub%20Penny%20Rule%20Compliance.htm
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