October 22, 2007
On the 17th, in a single trade, 2 million shares of NFI were sold.
No investor owned 2 million shares, as this represented 20% of the legally issued shares.
Puts and calls for 20,000 Oct. 10 contracts (which would expire three days later) also traded.
About two hours after this trade, it was announced that NFI would be disqualified from trading on the NYSE.
Is it a proper use of the OMM exemption to front run news?
Is it a proper use of the OMM exemption to add 20% "liquidity" in a single trade?
Why did the "buyer" of these newly created shares make no required filing with the SEC as a purchaser of over 5% of the existing stock?