July 18, 2008
Failure of the SEC to completely stop naked short selling in all stocks undermines the entire system. I understand naked short selling is a long time violation of present regulations. Selective application of the law sends a message that the agency condones this activity.
Rather than an exemption put an end to a practice that undermines confidence.
No confidence means no markets
End all naked short selling. It really is that simple.
Understandably bona fide primary dealers require a reasonable period to comply but any longer than a few weeks should be viewed as a naked short position.