Wednesday, September 22, 2010 9:43:38 AM
Settlement of stock transactions is supposed to occur within three days, at which time a naked short should become a fail–to–deliver, however the SEC routinely and automatically grants a number of extensions before the naked short gets reported as a fail–to–deliver. Most of the short hedge funds and broker dealers have multiple entities, many offshore, so they sell large naked short positions from entity to entity. Position rolls, as they are called, are frequently done broker to broker, or hedge fund to hedge fund, in block trades that never appear on an exchange. Each movement resets the time clock for the naked position becoming a fail–to–deliver and is a means of quickly getting a company off of the SHO threshold list.
See my post 25442, there were no block trades between 8/24 and 9/8.
I filtered for block trades over 20,000 and the following is what I got:
09/08/10 08:04:35 0.32 0.31 0.325 25767
09/08/10 09:36:55 0.325 0.325 0.325 110041
09/08/10 10:13:00 0.32 0.32 0.347 25000
09/08/10 11:21:07 0.32 0.32 0.32 32797
09/08/10 11:21:22 0.33 0.33 0.33 32797
09/08/10 11:21:52 0.32 0.32 0.32 65594
09/08/10 15:39:07 0.32 0.32 0.32 29870
09/08/10 15:39:52 0.31 0.31 0.31 89610
09/09/10 08:09:04 0.31 0.30 0.32 109683
09/09/10 11:01:23 0.317 0.31 0.317 40000
09/09/10 11:30:07 0.319 0.319 0.319 35670
09/15/10 10:41:27 0.33 0.33 0.337 25000
09/15/10 11:07:55 0.337 0.337 0.337 219423
09/15/10 11:24:07 0.338 0.338 0.338 58546
09/15/10 11:24:37 0.337 0.337 0.337 117092
09/15/10 11:24:52 0.338 0.338 0.338 58546
09/15/10 12:57:30 0.36 0.36 0.36 220736
09/15/10 15:57:55 0.43 0.43 0.43 218498
09/16/10 10:03:30 0.43 0.43 0.43 178444
09/16/10 10:36:30 0.41 0.41 0.41 176634
09/16/10 10:39:30 0.385 0.385 0.385 177474
09/16/10 10:57:30 0.40 0.40 0.40 179694
09/16/10 11:35:30 0.39 0.39 0.39 179234
09/16/10 11:38:30 0.395 0.395 0.395 163424
09/16/10 11:43:30 0.39 0.39 0.39 182194
09/16/10 13:52:30 0.37 0.37 0.37 179694
09/16/10 13:53:30 0.37 0.37 0.37 20000
09/16/10 14:03:30 0.37 0.37 0.37 178414
09/16/10 14:06:30 0.35 0.35 0.35 30000
09/16/10 15:28:30 0.38 0.38 0.38 177769
09/17/10 09:32:20 0.38 0.37 0.385 177094
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