One Step Ahead

[Bo14172]

CMKX: SHO Pilot Delayed.

D in the Ruff, I appreciate what you wrote in your last post to me. Call it a crash course I've had in the land of high risk this past 12-13 months, but if you read my post yesterday http://www.investorshub.com/boards/read_msg.asp?message_id=4815476, this is one prediction I wish I was wrong, but knew with 100% certainty would unfortunately come to pass:

"For those that have been around, there are have a few legislative acts, new so called statutes and alleged lawsuits which are going to rock the NSS world. To date, nothing has been effective. I'm hoping for the best, but don't be surprised if the SHO is delayed to a future date, or has no effect as it relates to CMKX."

Be well, Bo
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http://www.sidley.com/db30/cgi-bin/pubs/MarketRegDec0104v2.pdf

SEC Delays Implementation of the
Regulation SHO Pilot
The Securities and Exchange Commission (“SEC”) has issued an order1 delaying the
commencement of the Regulation SHO pilot program (the “Pilot”), which will
suspend the application of the price test restrictions (i.e., the “tick” test for
exchange-listed securities and the “bid” test for Nasdaq National Market System
securities) on short sales in certain designated securities.2 Specifically, the
commencement of the Pilot has been delayed from January 3, 2005 until May 2,
2005, with the Pilot now scheduled to end on April 28, 2006.
The SEC noted in the order that the decision to delay the Pilot is primarily based on
concerns expressed by broker-dealers with the requirement to mark short sales in all
securities included in the Pilot “short exempt.” In particular, broker-dealers have
represented that this requirement imposes significant system changes to ensure that
short sale orders in Pilot securities are marked properly and that such marking is
maintained throughout the processing of the order. The SEC noted in the order that
a number of market centers have offered to assist their members in this regard,
namely by allowing all such short sale orders to be executed without regard to a short
sale price test, regardless of whether the order had been marked “short” or “short
exempt.” However, these market centers have also represented that they would not
be able to complete all the necessary systems changes by January 3, 2005. The SEC
stated in the order that broker-dealers retain the responsibility to properly mark all
short sale orders in Pilot securities upon commencement of the Pilot on May 2,
2005, however also indicated that it would consider requests for exemptive relief on
behalf of these broker-dealers, to the extent the market centers have implemented
the necessary systems changes.