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04/27/06 11:50 AM

#7015 RE: xZx #7009

My theory: There is a time lag between the actual short sales and the stock appearing on the SHO list. First there is the T plus 3 before clearance which means that the FTD's do not appear for at least three days. Then there is a further 5 days before the stock will appear on the Reg SHO list. The stock must have the required number of fails for five consecutive days before it is listed.

This also means that it will remain on the list for five days after the number of fails falls below the threshold level.