Replies to post #25207 on EFuel EFN Corp (EFLN)

[Green Money 00]

this is what the website states about shorting and i sent an e-mail to ask what are the fees and min they charge for an account. also i would point out Interactive Brokers is very large trading firm if im not mistaken with many offices all around the world.

Information on Exceptional Short Sale Regulations
Limitation on Short Sales in Financial Services Companies (SEC Emergency Order 34-58592)

The SEC emergency order 34-58592 expired on 9 October 2008.
Limitation on Short Sales in Certain UK Financial Services Companies (FSA/PN/102/2008)

The UK Financial Services Authority (“FSA”) has issued a prohibition on short sales in approximately 40 UK-listed Financial Services Companies. The prohibition is complex and refers to any trading strategy that is economically equivalent to a short sale, and therefore applies as well to derivative strategies such as put option purchases or call option sales. The rule was scheduled to remain in effect, subject to FSA review, until January 2009. More information regarding UK short sale regulations can be found on the FSA website, and also at:
http://www.fsa.gov.uk/Pages/Library/Communication/PR/2008/index.shtml
Other Restrictions on Short Selling

Many countries have imposed special restrictions on short selling. IB has respected the regulations where the restriction is consistent with IB's existing systems. Where the regulations define security lending practices not currently supported by IB, we have restricted short sale activities altogether.

Pre-Borrow Restriction (short sales allowed only with pre-borrow prior to the actual sale): IB does not support pre-borrow services(1). All stocks are therefore effectively restricted: Australia, Japan, Hong Kong.

Restrictions on Specific Stocks: UK, Germany, France, Netherlands, Switzerland, Belgium, Sweden, Canada, Norway, Italy.
Special Deliver and Buy-In Regulations for US Securities (SEC Emergency Order 34-58572)

SEC Emergency Order 34-58572 expired on October 17, 2008.
Securities and Exchange Commission Release No. 34-58773

Amendments to Regulation SHO

Interim final temporary rule and request for comments.

SUMMARY: The Securities and Exchange Commission ("Commission") adopted an interim final temporary rule under the Securities Exchange Act of 1934 (“Exchange Act”) to address abusive "naked" short selling in all equity securities by requiring that participants of a clearing agency registered with the Commission deliver securities by settlement date, or if the participants have not delivered shares by settlement date, immediately purchase or borrow securities to close out the fail to deliver position by no later than the beginning of regular trading hours on the settlement day following the day the participant incurred the fail to deliver position. Failure to comply with the close-out requirement of the temporary rule is a violation of the temporary rule. In addition, a participant that does not comply with this close-out requirement, and any broker-dealer from which it receives trades for clearance and settlement, will not be able to short sell the security either for itself or for the account of another, unless it has previously arranged to borrow or borrowed the security, until the fail to deliver position is closed out.

Effective Date: October 17, 2008 except §242.204T which is effective October 17, 2008 until July 31, 2009.
Notes:

* 1We expect to be able to offer these services in 4Q09.


http://www.interactivebrokers.com/en/p.php?f=shortableStocks

[Green Money 00]

IB Short Stock Buy-In Procedures

SEC regulations implemented in September 2008 require that short sellers comply with their delivery obligations on the standard settlement date, generally three business days after the trade date. The regulations additionally require a repurchase of securities that are not delivered ("fail") by the next trading session for the securities. This contrasts with previous practice wherein a trade could "fail" for several days after the target settlement date, permitting brokers more time to make delivery by finding lenders for the stock(s).

As a result of the more stringent regulatory enforcement of the delivery rules, lenders have generally become more conservative in their lending activities leading to a decline in the general availability of inventory in many less widely held stocks. This creates an additional effect on the securities borrow/loan market by causing dealers to more readily recall existing loans rather than establishing new borrows to manage their inventory needs. For a fuller discussion of short sale and stock borrow and lend ("SLB") mechanics, please click here.

For details on how IB processes buy-ins please refer to the following IB Knowledge Base article http://ibkb.interactivebrokers.com/node/845.