July 18, 2008
Regulation SHO needs to put the responsibility of assuring delivery on the broker dealer by borrowing the shorted shares. Naked short selling has been illegal but it has not been enforcesd, how will this new regulation fix that? My understanding that the Canadian and other foreign exchanges are being used to circumvent this Reg. SHO. Don't allow a camouflaged naked short as in a "Broker Anonymous." Also, "Fails to deliver" should be bought in on the day after the fail date.