Replies to post #1 on Regulation SHO Trading Strategies (FO SHO)

[december]

I see a few stocks I own up there but I guess we will have to wait and see what happens.

[ergo sum]

Answer: Under Rule 203(b)(3), when a participant of a registered clearing agency has a net settlement failure in a threshold security for 13 consecutive settlement days, two consequences follow: (1) the participant must immediately take steps to close out the fail to deliver position; and (2) until the fail to deliver position is closed out, the participant and any broker or dealer for which it clears transactions must borrow the security that is the subject of the fail, or enter into a bona-fide arrangement to borrow such security before the participant or such broker or dealer may effect any subsequent short sales in such security. This pre-borrow requirement remains in place until the participant closes out the entire fail to deliver position. Therefore, a participant that has a close-out obligation for a threshold security may effect short sale orders for such threshold security up to the amount pre-borrowed.
http://www.sec.gov/divisions/marketreg/mrfaqregsho1204.htm

[Capt_Nemo]

I hope it helps, but IMHO just throwing another bone, and all these Pinkie stocks on the list, why?? They are non reporting!!!!! I will have to watch all of this, but sumpin smells like fish!!!

[originunknown]

Probably best to just watch them for now, although I am already in a few of them so I have a vested interest in seeing them go up.

[pontius]

I was thinking if all looks good & otherwise one would buy because of speculated appreciation & a stock was SHO'd up it could really move on the squeeze effect, or belief of one (who knows?). Just a possibility of course.

Haven't checked to hard or much at all yet... Anyone see anything like the above scenario?