Spongetech Delivery Systems, Inc. (fka SPNGQ)

[Renee]

The DTCC never lends out Naked Short Shares / NSS. The DTCC processes shares that are on deposit. Some of those shares may be unregistered shares or illegally exempted from registration shares. That is not the DTCC's fault.

The entire blame rests with the issuer offender.

When hundreds of millions of shares are traded in one Security on any trading day the buying and selling can be volatile. Under Regulation SHO the Market Makers are lawfully permitted to fulfil buy or sell orders BEFORE having a locate which makes that share a temporary Naked Short Share. That is referred to as the MM's making an orderly market that would be absolutely chaotic if the MM's had to locate every single share before permitting the trade. Investors would be furious.

So, until the MM's locate and deliver each share from Brokers who allowed their clients to buy or sell those shares are Naked Short Shares. The Brokers and MM's settle each trade within 3 days
and the formerly naked short share becomes a located, delivered, and SETTLED share.

Myths and misconceptions about NSS place the blame on everyone other than the only real offender, the serially diluting company who floods the market with unregistered and / or illegally exempted from registration shares.