July 16, 2008
let's get real - a seller who doesn't deliver has nothing to deliver.
That seller sold something that they did not own or borrow.
Why did they do that?
Answer: To manipulate the price of the stock.
Why do you allow this practice to be practiced?
If a buyer does not deliver the purchase price, the buyer is sold out.
So, if the seller does not deliver the securities sold, the seller should be sold out.
How do you do that?
The seller's registered agent should be required to reverse the transaction.
This reversal must be automatic - a "failure to deliver" requirement imbedded in every agents computer system.
Your compliance department simply asked each agent to swear, under the penalties of perjury, that the appropriate code entries are in place.
Three business days to delivery the securities or the money.
What is good for the goose, is good for the gander.
How is this so difficult?
If the sale is legit, then the agent will make certain that delivery is made.
Peter R. Engelhardt