NewMarket Technology (fka NWMT)

[starfire]

Let me try....
Naked shorting is selling shares when it does not exist in the shares inventory (of the BD). Now my understanding is that naked shorting is not illegal (as sometimes it is a necessary tool for MMs to bring supply/demand into balance). But what is illegal is Failure to Deliver i.e say you sold 10 shares out of your inventory where none existed. Then after the sale the inventory would carry -10 of those shares. It is BD's responsibility to purchase those 10 shares and make the inventory total eqaul to zero (which was the initial state). However, currently in the market the replenishment is not being done.