Blademan you got it. Thats the right train of thought to have on the short issue. The FTD possibility is running extemely high. That being said we should just all hold tight for buying pressure. That simply.
Nope...Try reading the details if you won't read and understand my posts. An FTD can be created by many things of which a short sale is only one of them. I even gave you examples but your blinders have distracted you from learning.
Do all failures to deliver reflect improper activity that should be closed out?
A "fail to deliver" occurs when a broker-dealer fails to deliver securities to the party on the other side of the transaction on settlement date. There are many justifiable reasons why broker-dealers do not or cannot deliver securities on settlement date. A broker-dealer may experience a problem that is either unanticipated or is out of its control, such as (1) delays in customers delivering their shares to a broker-dealer(they are referring to long investors here), (2) the inability to obtain borrowed shares in time for settlement, (this would be short selling and show up as part of short sale volume) (3) issues related to the physical transfer of securities(this is the delays in paper transfer as i spoke of), or (4) the failure of a broker-dealer to receive shares it had purchased to fulfill its delivery obligations. (If a broker-deal buys and sells on the same day they will have a delivery obligation the same day the other party has a delivery obligation to them) Fails to deliver can result from both long and short sales.
Regulation SHO was designed to target potentially problematic failures to deliver. Prevention of fails is the goal of the locate requirement. Regulation SHO requires broker-dealers to identify a source of borrowable stock before executing a short sale in any equity security with the goal of reducing the number of situations where stock is unavailable for settlement. But, because the locate is usually done three days before settlement, the stock may not be available from the source at the time of settlement, possibly resulting in a fail.
Regulation SHO also requires some fail positions to be closed out. When a broker-dealer has a fail position in a "threshold security," and that fail position has persisted for 13 consecutive settlement days, the broker-dealer must take immediate steps to close-out the fail by purchasing securities of like kind and quantity. Even market makers that have such persistent fails in threshold securities must close-out their positions.
So to the question you keep asking about this bogus metric of short sale volume to total trade volume, the metric is meaningless as the data has zero resolution.
BTW...Sterling asked to stop talking about short issues and focus on the business. Why doesn't anybody want to talk about the TA you all rely on. Everybody here admits that Pet CT Diagnos is Bederra. And a reverse phone search (paid $20.00 for it) verifies that the Transfer Agents phone is paid for by Pet CT Diagnos. No concerns?
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