NewStream Energy Technologies Group Inc (NSGP)

[trader53]

Regulation SHO mandates that, if a clearing agent has had a fail-to-deliver position for 13 consecutive settlement days, that clearing agent, and the broker/dealer it clears for, must purchase securities to close out its fail to deliver position.


The failure to deliver in shares of CCTC has not been resolved and a buy-in is expected.

Regulation SHO took effect January 3, 2005, and provides a new regulatory framework governing short selling of securities. It was designed with the objective of simplifying and modernizing short sale regulation and providing controls where they are most needed. At the conclusion of each settlement day, data is provided on securities in which: 1) there are at least 10,000 shares in aggregate failed deliveries for the security for five consecutive settlement days, and 2) these failures constitute at least 0.5% of the issuer's total shares outstanding.

CCTC was placed on the "Naked Short List on March 30th, 13 days ago as of last Friday.

The shorts that shorted the shares, didn't borrow them, that's why they are called Naked Shorts. The shares must be returned to the borrower in the case of normal shorting. Naked shorts have 13 days to deliver the shares.

The significance is that they have to buy back the shares they shorted. If news breaks, and sends the stock up sharply, these short players will be chasing the stock up as it rises in price. As the stock goes up, they lose money. And it can be lots of money depending on how many shares they shorted.

http://www.buyins.net/releases/?id=95556