September 25, 2006
I find it truly amazing that NITE is opposing changes to Reg SHO. Is it because: A) They had almost $200 million in customer fails for 1h06? B) They have a $500 million+ Securities Sold Not yet purchased liability where they move customer fails to after stocks are halted? How do you cover a short in a stock that doesn't trade anymore? C) 90%+ of their volumes come from otcbb/pink sheet stocks AND their Top 10 traded stocks in August didn't add up to ONE PENNY? D) Their trading profits for 1h06 were 148 million up from 65 million in 05? E) that 1 of their top traded stocks in August was AUGC. In July they traded just over 200 million shares and in August their volume shot up to almost 2 BILLION. AND AUGC hit the SHO list on August 15?
F) that their traders routinely mark "short" sales as "long". etc etc
That letter is quite the confession of a penny/sub penny stock manipulating firm.