Replies to post #2504 on NSS ~ Counterfeiting Stock ~ MM Games Played

[AlanC]

"Naked shorting is a phenomenon unknown two
years ago, but it now offers the prospect of being the
most volatile and significant market activity of the past
several decades. It appears, from the evidence gathered,
that it is pervasive throughout all markets and all industries.
Evidence from the sec shows the outstanding
delivery failures can surpass 100 percent of the average
daily trading volume. The average for the OTC is
approximately 28 percent of the average daily volume.
This does not include the ex-clearing fails, which are
not reported. Even some NYSE firms experience an
abnormal number of fails. NovaStar claims to have
FOIA documents showing on some days 40 percent of
its daily trading volume fails to deliver. Again, this does
not include ex-clearing trades.
It is interesting to note that no brokerage firm
has admitted the existence of or participation in naked
shorting. However, since SHO’s implementation in
January of 2005, firms such as Goldman Sachs, Citigroup,
JP Morgan, Wachovia, First Clearing, Daiwa,
and Credit Suisse have been censured and/or fined for
violations of Regulation SHO.17"
page 57 The Journal of Trading
http://www.csb.uncw.edu/people/moffettc/Research%20Papers/IIJ-JOT-BROOKS.pdf

[fourkids_9pets]

exactly .. it's never been *retail*

even tho' for years 1000s of posts
*conditioning* by rote were these
MMs were *retail* .. total and utter
hogwash and citadel's control of etrade's
desk .. shows exactly what is what ...

the hedgies have their filthy mitts all over
these MMs' <hence my posts about their crap
clientele and crappy internal controls except
of course it was deliberate they knew no one
was watching> .. janice is right about one thing

greed does control both the MMs' .. the hedgies
and the prime B/Ds' .. what is incontrovertible
is that on poorly watched co.s <per SEC the OTC>

is that
this last decade was a license to steal and sox
made that stealing even far easier to do against
the legit micros' .. it would be nice not to lose
anymore to *greed*

==
4kids
all jmo

[janice shell]

Janice, do market makers have the same margin requirements when they are shorting to create a market?

No. But if they want to take a short position for purposes unrelated to making a market, they have to do so in a proprietary account, which will be subject to margin and maintenance.