United States Oil and Gas Corp (fka USOG)

[The_Pro]

SEC Regulation SHO:


"Close-out" Requirement: Regulation SHO imposes additional delivery requirements on broker-dealers for securities in which there are a relatively substantial number of extended delivery failures at a registered clearing agency7 ("threshold securities"). For instance, with limited exception, Regulation SHO requires brokers and dealers that are participants of a registered clearing agency8 to take action to "close-out" failure-to-deliver positions ("open fails") in threshold securities that have persisted for 13 consecutive settlement days.9 Closing out requires the broker or dealer to purchase securities of like kind and quantity. Until the position is closed out, the broker or dealer and any broker or dealer for which it clears transactions (for example, an introducing broker)10 may not effect further short sales in that threshold security without borrowing or entering into a bona fide agreement to borrow the security (known as the "pre-borrowing" requirement).
http://www.sec.gov/spotlight/keyregshoissues.htm

For 6/17/2010 there were:

3,639,432 naked shorts out of a total volume of 6,814,132 for a large 53.4% of all stocks sold that weren't spoken for (owned or borrowed). That's a reason for a slippen and a sliding of USOG's pps.

These naked shorts have to be checked for compliance or forced to close out (buy to close). USOG's price would go up fast.