The ability of options market makers to sell short and never have to close out a resulting fail to deliver position, provided the short sale was effected to hedge options positions created before the security became a threshold security, runs counter to the goal of similar treatment for fails to deliver resulting from sales of securities and may have a negative impact on the market for those securities.
T]he current options market maker exception only excepts from Regulation SHO's mandatory 13 consecutive settlement day close-out requirement those fail to deliver positions that result from short sales effected by registered options market makers to establish or maintain a hedge on options positions established before the underlying security became a threshold security.
OTC Markets defines, "A threshold security is any equity security that has a significant fail to deliver position for at least 5 business days.
A security ceases to be a threshold security if it does not exceed the specified level of fails for five consecutive settlement days.
NET will monitor the OTCBB naked short list daily and issue an alert and notify the SEC and FINRA should short sellers fail to deliver and GVBP appears on the exchange's Threshold Security
SpongeTech[R] has been on the OTCBB Threshold Security
List ("naked short list") a total of 85 trading days since January 1, 2005 and is presently on the list from July 24, 2009 to through August 25th, a total of 23 consecutive trading days.
As of November 23, 2007, the Company's Common Stock was included on the Threshold Security
OTCBB:WLSA) recently became aware that its shares have been designated a Threshold Security under Regulation SHO by the National Association of Securities Dealers (NASD).
Under Regulation SHO an issuer is designated a Threshold Security if for five consecutive settlement days:
com, conceives, develops and markets state-of-the-art security systems, announced today that based on a new Securities and Exchange Commission regulation governing short selling, known as Regulation SHO, it has been listed on the Threshold Security
List published Friday, January 14, 2005.
OTC: SCMI) announced today that based on a new Securities and Exchange Commission regulation governing short selling, known as Regulation SHO, it has been listed on the Threshold Security
List published Friday, January 7, 2005.
HEE Corporation (HCCF on OTC Pink Sheets) HEE Corporation announces that HCCF (HEE Common Stock) and HCCFP (HEE Preferred Stock) are shown on the 'Regulation SHO Threshold Security
List' clearly demonstrating the attention regulatory agencies are focusing on the 'Naked Trading" of securities.