If you read the text of SEC regarding naked shorting then you will recognize that they are willing to accept any explanation why MM is short. Read yourself this scrap!!
Poor MMs cant get any shares on market and SEC willing to accept. What a sh.t. You know what, in Austria we just discovered that Telecom could write the law by themselves as they corrupted the minister with some hundred thousands of Euro. Maybe in US MMs are writing the laws of SEC also themselves.
If MM increase the BID they would get shares. 77% spread we had yesterday. Is this no crime? Of course not for SEC, its a temporary problem, just for some years. Who cares when sharks make money. Read yourself the original text:
Naked short selling is not necessarily a violation of the federal securities laws or the Commission's rules. Indeed, in certain circumstances, naked short selling contributes to market liquidity. For example, broker-dealers that make a market in a security4 generally stand ready to buy and sell the security on a regular and continuous basis at a publicly quoted price, even when there are no other buyers or sellers. Thus, market makers must sell a security to a buyer even when there are temporary shortages of that security available in the market. This may occur, for example, if there is a sudden surge in buying interest in that security, or if few investors are selling the security at that time. Because it may take a market maker considerable time to purchase or arrange to borrow the security, a market maker engaged in bona fide market making, particularly in a fast-moving market, may need to sell the security short without having arranged to borrow shares. This is especially true for market makers in thinly traded, illiquid stocks such as securities quoted on the OTC Bulletin Board,5 as there may be few shares available to purchase or borrow at a given time.
Just few shares available to buy??? Of course if you keep spread at 77%. Its a mockery of fish by sharks.
US is like Europe, you have to betray by Billions than you are free to do what you like, but never steal a piece of bread. No justice, just abuse of police and army against fish by sharks.
