It appears Carlos "not-so" Sllim has been seen 'gliding' into a futuristic '50+' Building....south...indeed way south...cackling as he tipped his 1920's gangster cap.
Rocker Partners Ongoing Violator of Reg SHO Rules
Rocker Partners, a NY hedge fund run by David Rocker, along with Helmsman Holdings (a BVI fund), solely controlled by David Rocker, is short 30% of the US companies on the NYSE Regulation SHO Threshold list. The companies he is known and documented as being short are NFI, ALD, KKD and PPD. He is also known to be short at least 20% of the US small cap companies on the NASDAQ Regulation SHO Threshold list - AAII, NFLX, OSTK, and TASR. All of these positions are easily confirmed by googling the companies and Rocker.
Could this all be a big coincidence? A fluke? Possible, but in my opinion unlikely. The likely explanation is that this is a very bad guy who believes, obviously, that the rules were made to be broken. They don't apply to him. His modus operendi is clearly to abusively naked short a company without regard for the laws or the rules, understanding that nobody is ever going to enforce them. So why not? It's a lucrative business - in this instance, illegal behavior apparently pays handsomely.
A fair question is how large is the fail to deliver problem in these companies? No one will say. The DTCC and the NYSE and the NASDAQ are all tight lipped as to the size and scope of the fails problem, and they won't tell anyone how large an issue it is. They have stonewalled any attempts to get the numbers by the companies that have been violated, and seem confident that nobody is going to make them tell. Who has the money to go up against them?
So the violations continue. The perpetrator is able to create a virtually endless supply of shares with which to depress the price of the companies he's targeted, and no one is stopping him. And the DTCC and the Exchanges are helping by protecting him and not divulging the size of the problem.
This is a systemic issue, but Rocker is an easy face to put on the bad guy, as he is short so many of companies on the lists.
Why hasn't the SEC stepped in and done an investigation of his trading? Is 30% of the NYSE list not enough of a smoking gun? What will it take? 50%? 80%?
When will the SEC require the DTCC to come clean and tell everyone how large a problem they've created with their "stock borrow program"? Ever? Or is it OK to violate all the rules and facilitate fraud as long as you are a favored entity?
The DTCC is not the government. Far from it. It is a private company chartered under the banking laws of NY, partially owned by the Federal Reserve and by the NYSE. It is a for profit entity. By what right can it simply refuse to answer reasonable questions as to its operations? What rule or regulation can it use to justify its obstinate refusal to fess up as to the number of fails in its system?
It sounds like the DTCC doesn't want to incriminate itself, so it's simply refusing to answer direct questions.
And it sounds as though Rocker Partners is a good example of how a money manager with a lot of contacts and cronies in New York may be using the system to rob companies of their valuations, and shareholders of their money, aided by the DTCC and the complacence of the SEC.
As an aside, it is interesting to note that no accountability mechanism is in place to find out where all the money comes from to fund these types of hedge fund entities. Middle Eastern cash of dubious origin? No problem. Russian dollars of indeterminate cleanliness? Bring it on. The Cali Teacher's Association, or the Bogota Retirement Guild? The cash is all green.
What a travesty of justice.
Crime pays. Big time on Wall Street.
How can the President ask us as a nation to put our money into the markets when this kind of predator is allowed to systematically cheat investors who are in the very same market? What are they thinking? Did they just think no one would notice?
The system must be fixed. Now would be a good time to start.
Shorts, are you prepared to sell your soul or your daughter's soul to cover later?
Then why wait? Cover now! Hurry Cover Now!
Buy GLBC now! Buy GLBC now! http://www.webspawner.com/users/rockerscam/index.html
NewMarket Technology Inc. (OTCBB:NMKT) released a letter today to shareholders addressing the new SEC Regulation SHO. The letter is included in this press release.
Dear Fellow Shareholders,
The first month under Regulation SHO has just closed. This correspondence is in response to the numerous inquiries recently from shareholders regarding Regulation SHO as it might apply to NewMarket. Management is encouraged by the potential of Regulation SHO to limit trading volatility from irregular, excessive and improperly documented short sales and we have taken extra measures to contribute to the intent of Regulation SHO. Supervision of the new compliance requirements under Regulation SHO is a large undertaking for an already burdened SEC. We anticipate the market wide impact on irregular and excessive short sales to take a considerable amount of time. Accordingly, NewMarket has undertaken a pro-active effort to communicate with market participants active in the trading of NewMarket shares in regard to trading activity that could indicate potential violations of the new Regulation SHO.
Short selling itself is not illegal. However, the regulations associated with short selling are very specific. A short sale is the sale of a borrowed security. The new Regulation SHO clearly requires that the existence of the borrowed stock be documented prior to the execution of a short sale. Regulation SHO states, "The locate must be made and documented prior to effecting a short sale, regardless of whether the seller's short position may be closed out by purchasing securities in the same day."
Market makers are exempt from the uniform "locate" requirement in order to support a fluid trading environment. The broker dealer executing the order bears the "locate" responsibility. Market makers that are also broker dealers will be required to comply with the "locate" requirement as it applies to their broker dealer activity. Market makers are only exempt as it applies to bona-fide market making. If a market maker posts continually at or near the best offer, but does not also post at or near the best bid, the market maker loses the "locate" exemption.
In the interests of shareholders, NewMarket has initiated an effort to monitor daily trading. When a market maker's posted sales appear disproportionate with their posted purchases, we now initiate a written communication to the market maker to bring their attention to the potential of a "locate" violation. This is not a communication to direct or insinuate wrongdoing. On the contrary, our intention is to cooperate with market makers in an effort manage an efficient market in compliance with Regulation SHO. We recognize the fast-paced environment of the trading activity and we further recognize how in such an environment a market maker might be an unknowing conduit for short sales out of compliance with the new "locate" regulation.
In the last month we have sent correspondences to numerous market makers in regard to potential "locate" violations. We have sent several correspondences to the top four most active market makers by share volume. All market makers contacted, with the exception of UBS Capital Markets (SCHB), formerly know as Schwab Capital Markets, have responded. UBS Capital Markets was the largest market maker by volume in January at 32% of the 15 million shares traded. UBS Capital Markets has been the largest market maker in NewMarket stock by volume for the last three months. We recognize that UBS is one of the most active market makers in micro-cap trading and NewMarket is just one of many issues it trades, but we will continue in our communications to facilitate our genuine and sincere efforts to cooperate with the intent of Regulation SHO.
We will continue in our efforts to proactively support an efficient market and we will likewise continue to communicate with shareholders in our ongoing efforts.
Click here: http://ncans.net/files/targeted020705_cc.pdf
Naked short sales drive down the price in an
abusive or manipulative way.
GLBC is an example of short manipulation.
SHO will correct and resolve this abuse.
The existing shorts will have continuing pressure to cover.
The Company is working to achieve break even cash flow within one year.