Futuris Company (FTRS)

[xyz1002]

that is news to me. Which brokerage is offering shorting from USA account? Let me know.

The only way that would be possible if the same brokerage allowed you to trade from Germany market. Here is how most shorting or even naked shorting is done for .OB and .Pk stcoks:

1) This one is big. All hedge funds have either their own trading desk or direct relationship with an investment firm that has a trading desk. There are a handful of hedge funds who specializes in issuing CD for small caps and they even have dedicated traders available to them from their investment banking firms. Most small caps raise money via issuing CD at a hugely discount (40% standard)rate. As soon as the hedge fund are sure they are going to finance one small cap stock, they basically tell their trading desk to start selling the stock even when they don't have the stock. The MM for that trading desk will keep shorting with full knowledge that he will be handed over the stock at a future time. Whenever the stocks are handed over, the MM will fill them as T-trade after market. Thats why you see those notorious T-trades for a falling stcok price.

2) Day-to-day activitries of MM's require to close the book by market close but rarely they are able to do so. Ideally their bosses would like to see all books closed. Even if they don't want to they land up with open position long/short on many secirities they trade. Think of it bthis way. If I am the investment banker and in charge of certain trading desk, my goal is to make as much profit with as little risk. If all my traders have closed their books by the end of the day then I can sleep happily knowing there is no risk left. If let us say my traders/MM have $20M of open position, I won't be very happy. btw- whther it is the MM or the trading desk manager, investment banker, all their jobs are online if they lose a boatload of money for the parent company.

3) Manipulation: Hedge funds with their own trading desk or direct relationship with trading desk can ask their MM to short a stcok if they are sure they can make money. So the MM goes short with a gurantee from their boss that if they lose money it is not the MM whose ass is in line of fire.

I worked in Wall Street many years and still deeply involved in various private investment.