July 24, 2008
Its a start but still need to do all stocks and do away with market maker and options maker exemptions. No one should be able to naked short and then fail to deliver. Question should be why do they need to hedge using the backs of the investors of the stock. Why should the risk be off loaded to the investor. Why can the options makers not price the risk into the premiums they charge for options. If the options are to much a risk in certain stocks then they should not be doing them in those stocks. Question is why should options makers not have risk just like the investor takes risks in buying the stock. Naked shorting if not delivered in t+3 and becomes a failed trade should be considered fraud and prosecuted and treated like a bad check and carried to court and let the judge decide the case on each circumstance whether it was intentional or innocent.