October 2, 2005
As an investor and business owner, I am concerned about this situation in the OTC market. Below are a few thoughts that I have gathered from Pink Sheets.com which I concur with strongly." Due to the lack of short sale position reporting and disclosure for OTC issues, there is now a crisis facing the OTC market today . The lack of transparency regarding short selling in the OTC market allows fraudulent acts to go undiscovered and manipulative short sellers to hide.
I believe regulators should fix the problem. Small issuers traded on the Pink Sheets and the OTCBB deserve the same transparency and regulatory oversight of short selling as those listed on Exchanges or NASDAQ.
Therefore, Pink Sheets (and now I add myself) has petitioned the SEC to cause the amendment of NASD Rule 3360 and require NASD broker dealers to maintain a record of total "short" positions in all customer and proprietary firm accounts in all publicly traded equity securities as well as report this information to the NASD for public dissemination of the short positions by security. The SEC's action is urgently needed to prevent fraudulent acts, expose market manipulation, promote fair principles of trade and protect investors."
The prompt attention of NASD will make a huge difference in ensuring that the OTC market is a viable market for small issuers and up and coming companies.
Solutions Media, Inc.