AI
Friday, June 29, 2012 11:12:56 AM
Would short trades be represented in that volume total just as any "regular" trades would be?
Yes
Is it typical for a broker to allow the sale of such shares, given that they are aware that the required time period has expired to allow removal of the legend? Or do they typically wait for the proper documentation?
...
I would expect the latter, so I'm wondering if you have a sense of the frequency with which this might occur?
Typical? I don't know. Do some brokers allow it? Yes. Does it make sense-- for example -- for Stock Promoters/Consultants who are continually receiving Restricted Securities to find a broker that allows this? Sure. If it's their livelihood and the amount they receive depends on price movement? Absolutely yes as further time delays do not work in their favor.
Given that this causes a FTD and is presumably a FINRA violation (You are suggesting that this is legal...is it?:
Yes
Is this just a theoretically feasible explanation for JBI's presence on the threshold list, or is it really reasonable to think that a broker would essentially allow a target to be painted on their back this way?
lol-- nicely framed. The numbers support the target allowance route
BTW, in #msg-77085645 you appear to be mixing "daily reported short sales" with daily FTDs-- there is a distinction
SR-FINRA-2009-064 covers the daily short report and it notes not all sales are reported-- it specifically suggests some types of restricted security sales would not show up in daily numbers.
http://www.finra.org/web/groups/industry/@ip/@reg/@rulfil/documents/rulefilings/p120246.pdf
But they would eventually show up in FTD reporting if they tripped Reg SHO as a Threshold Security.
http://www.sec.gov/foia/docs/failsdata.htm
