Replies to post #94521 on CMKM Diamonds Inc. (fka CMKX)

[El Cordobes]

So how bad is this issue? (short selling)

In 1999 the SEC went out for public comment on a concept release pertaining to Short Selling. One comment they received came from a Senior Member and Director of Compliance and Operations for an NASD Member firm. This ranking officer claims “market makers and broker/dealers have rigged the game so they can play by a different set of rules than the general public and, to date, this has been protected by the regulatory bodies”. This Officer then proceeds on by Stating “Every day, market pros short sell IPO's, short sell on downticks, and short sell without regard to the availability of certificates, all things done at the expense of individual investors, who do not have the right to do the same.” To this extent, the issues addressed in this memo exist to this very day unchanged.

http://www.sec.gov/rules/concept/s72499/loverde1.txt