Sino Agro Food Inc (fka SIAF)

[Lucky Loser]

Currently, participants in the Stock Borrow Program could borrow from DTC in the event the Continuous Net Settlement system c/n complete a delivery of a security to a long member because a short member had not completed its delivery to CNS.

Naked Shorting has always been permitted due to the fact that those short would borrow from DTC until they obtained inventory to cover w/in 3-days of trx.

This intermediate source of shares will no longer be available come March 14. The reason given is that the practice of naked shorting has precipitously dropped off after the recession, and the profitability to NSCC with it, as well.

My opinion is that it's mainly due to Reg Sho, and the SEC's stringent enforcement of the 3-day rule, which had been practically unenforced prior to the recession.