New Short Rule Causes Technical Problems

The new technical rule on short sales has technical problems.  Small banks, not covered by the rule, wonder whether it will drive short sellers their way.  Market makers, exempted by the rule, wonder have the exemption works.  A short sale is a contract between a lender and a borrower.  The details of the contract's execution are now subject to new mandatory federal provisions.   A better set of rules would focus on title, something the government bestows, recognizes and enforces, be:  1) You cannot sell stock to which you do not have legal title in fee or as a tenant in fee (a borrower has legal title) unless you are acting as a licensed market maker and 2) You cannot loan stock more than once at any given time.