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March 17, 2008
SEC Publishes Text of Naked Short Sales Antifraud Rule
The SEC released for public comment the text of its proposed antifraud rule to address fails to deliver securities that have been associated with “naked” short selling. The proposed rule is intended to highlight the liability of persons that deceive specified persons about their intention or ability to deliver securities in time for settlement, including persons that deceive their broker-dealer about their locate source or ownership of shares and that fail to deliver securities by settlement date.
March 17, 2008 in SEC Action | Permalink
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Comments
Naked shorting represents counterfeiting of shares.
MarketMakers are as guilty of this practice as any individual, that is, they are co-conspirators and must be held accountable as such.
Market Makers that are the sole market maker for an individual stock should not be allowed any delivery delay of borrowed stock...that is, no borrowed stock, no short position. Sole market makers should not be allowed to make a short market against a stock without borrowed shares in hand.
Posted by: Tom Smith | Mar 23, 2008 11:35:26 AM
