Sunrise Consulting Group Inc (SNRS)

[photog321]

Once again....not shorts, but unsettled trades.

per retiredMM

when i'm not sure of something, i am not embarrassed to ask the question. This is why I called FINRA to get a clarification on short sale reporting to see if things have changed since I left the business. Basically, it has not. There are many reasons why a sale would be reported as short. They are as follows and it will draw you a better picture of why on days like yesterday and today most sales are reported as short even though they are not:

If there is an actual short sale like this past Friday and Monday when 90% of the volume was on the offer. Those sales were actually short but the caveat is the MM's may have sold them on behalf of a customer who gave them an order to sell. They accumulated a short position over a few days and are now holding a sizable short position as the customer has not yet "filled in the MM.

The customer now wants to "fill in" the MM and decides to sell it to the MM on the bid. The customer sells his stock to the MM on the bid yet the sale is reported as a short sale. This happens for one of many reasons.

1. The sale was done as a "Riskless Principal" trade. This means the customer goes to his brokerage firm and the firm just wants to execute the trade without risk so he goes to the MM and sells it on the bid and whatever he sells he buys from the customer at the same price. The broker gets a straight commission and it is therefore "riskless". That is reported as a short sale.

2. The customer is actually long the stock and has the certs but there is some kind of restriction on the certs. Since the customer has the physical shares (long) but it has to get a legal opinion or it has to be released by the transfer agent and it won't be released until after the settlement date it has to be reported as a short sale.

There are many other instances for reporting long sales as short as you can read on the SEC.gov site. It is Rule 200G.

In this case with this stock i believe it could be a combination of both things. Brokerage firm doing the sale as "Riskless Principal transaction and people selling shares that were either just issued or were Rule 144 stock or stock with restrictions.