May 1, 2008
A short seller either delivers or he doesn't. If he doesn't deliver on time, directly or through his broker, He should be thereupon (not months or years later) be presumptively in violation and the trade subject to immediate cancellation unless he is able to establish -- and document -- a legally acceptable excuse. The fail to deliver problem allows gigantic frauds to be committed on a regular basis. It's long, long past time for a serious crack down on this problem, with forfeitures and criminal punishment. The continuing failure to get this under control suggests a great deal of complicity by all involved parties, top to bottom.