and shortsquezze is near. Most of this naked shortselling is not legal, but it is able, because SEC and Finra doing not any control of criminal naked shortsellers and thieir criminal naked brokers.
My advice: Ask your congressman, what he had done in the past against this criminal pratice and what he will do in the future. And ask especially, what he will do, that existing rules will take place and were not ignored from SEC and Finra.
I naked short more a few times a week and nobody says anything. Must be legal I guess. Just keep adding to my huge profits, something not one long can claim..
Sentiment: Strong Sell
Time between dates of abusive naked shortselling and dates of accuses are too long:
OptionsXpress Accused by SEC of Naked Short-Sale Violations
By Joshua Gallu - Apr 16, 2012 11:15 PM
OptionsXpress Inc. (OXPS), the Chicago brokerage acquired by Charles Schwab Corp. (SCHW) last year, was accused by U.S. regulators of using sham “reset” transactions as part of an abusive naked short-selling scheme.
The company and four executives violated Securities and Exchange Commission rules in conducting trades from at least October 2008 to March 2010 designed to give the illusion of compliance with rules governing short sales, the SEC said in a statement today. An OptionsXpress customer was also accused by the SEC of participating in the alleged violations.
Wikipedia explains Naked Sjhortselling
Naked short selling, or naked shorting, is the practice of short-selling a tradable asset of any kind without first borrowing the security or ensuring that the security can be borrowed, as is conventionally done in a short sale. When the seller does not obtain the shares within the required time frame, the result is known as a "failure to deliver". The transaction generally remains open until the shares are acquired by the seller, or the seller's broker settles the trade.[
In 2008, the SEC banned what it called "abusive naked short selling"in the United States, as well as some other jurisdictions, as a method of driving down share prices. Failing to deliver shares is legal under certain circumstances, and naked short selling is not per se illegal. In the United States, naked short selling is covered by various SEC regulations which prohibit the practice.[
Published shortselling numbers don't include not legal naked shortselling, which is not part of this numbers
After my estimtates not legal naked shortsellling of shares of Local Corp is about the the 5-fold of the published numbers of legal shortselling on the base of lending of shares. I believe, it is very simple to understand, that nobody reporting about not legal acitivities.
But on the other hand: By both forms of shortselling - legal shortselling with share-lending and not legal naked shortselling - must covered one day. And I am sure, that the covering will more difficult now from day to day, because institutitionals had begun to collect and other strong hands like Flankenking, too - Flankenking for example had increased his ownerhship to 76,600 shares. That is a more than a third procent of the outstanding shares. And I am sure, other strong private hands will follow or had begun and we know a lot of institutionals, who did their first buys