Replies to post #184248 on Kraig Biocraft Laboratories Inc (KBLB)

[rayovac812]

there are a lot of brokers who are not registered with FINRA so we will never truly know the current short interest.

A couple of policy changes and they are standing outside in the cold. Make a rule change that to trade on any US exchange, you need to be registered with FINRA.(broker to broker) To back it up they would have to submit to immediately answering client inquiries. If they don't give up the clients, then their registration is immediately suspended pending answers to suspected illegal shorting transactions inquiries yada yada yada. How nimble is FINRA? From insiders I know, not too nimbly pimbly. Course if they make suspensions retroactive with large fines, I think no one would want to risk loss of their trading registration. Not to mention you could pay millions in penalties to the damaged company.

The reason this would be necessary, is because they look for ways around any rule changes. They would use other brokers with that coveted registration. So make all foreign transactions have a direct customer relationship. If you want to risk the fines and penalties, then you are willing to sacrifice your privileges. Force brokers to look after each other rather than government enforcement. It would take a dirtbag broker to expose someone they are asking to do transactions for them. They are already known to be dirtbags, but word spreads fast.

It is easy enough to follow money trails. The more complicated the trails are, the increased likelihood you are looking at illegal shorting or activity.

Bottomline, few brokers will do large transactions for other brokers. They will tell them to get their own registration and risk it.