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Re: User336447 post# 184885

Sunday, 05/27/2012 5:42:07 PM

Sunday, May 27, 2012 5:42:07 PM

Post# of 312025
The naked shorts are short-term. No one, MM's included, are allowed to leave naked short positions open. MMs often "short sell" a security before they buy it, so they are not stuck with an open long position. That's why there are a high percentage of stocks shown as "short" in the daily Reg Sho file. This does NOT indicate "massive naked shorting" as some suggest, but is simply a way for MMs to reduce their risk.

Sorry.

And MMs in the OTC are NOT required to maintain order in any stock. Only exchange traded MMs have that responsibility.


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