It doesn't matter where you have your shares, physical swap of certs is the only way to account for all real shares and screw the shorts.
Trust me. Show me how it would not work?
I don't know you but I do know my buddy. I will take the knowledge/experience of a guy who has 30 years of Market Making in some of the biggest companies in the world and is currently hired to help a fallen angel company over anyones info on this board - Unless you have proof otherwise - you can take it to the bank.