short position closed out by Scottrade WITHOUT NOTICE
Yesterday, I had 1,300 shares held short closed out by Scottrade WITHOUT any notice, whatever, pursuant to Regulation SHO. This cost me about $800 in profits, had I been allowed to close out the position myself a few hours later (yesterday). From my research, the regulation was implemented to create "locate" and "close-out" standards that are primarily aimed at preventing the opportunity for "unethical traders" to engage in naked short selling practices. According to Investopedia, the "locate" requirement requires that a broker has reasonable belief that the equity to be short sold can be borrowed and delivered to a short seller on a specific date before short selling can occur. This happening to anyone else?