From: Sandra Harvey
Regarding Member Records of "Short" Positions and Reporting and Public Dissemination of Aggregat Positions by Security.
The SEC's action is needed to regulate short selling in the OTC market. What happens to the holder of the naked short position when he or she does not fulfill his side of the contract? Are there any consequences? Do you even know who these traders are?? Are broker dealers held accountable?
I believe if the OTC is not regulated, market manipulation is inevitable and fair trading practices go out the window. Small issuers deserve the same protection as those that trade in NYSE, AMEX and NASDAQ.
Consider ABRXQ: according to Bloomberg.com, at the close of business 8/16/05, the short interest in the stock was $4.6 million, about 25% of the shares outstanding.
Does the SEC know when these short positions need to be covered or if they will ever be covered. Scary.
I can't believe the OTC and OTCBB is not regulated. Without regulations, it is just a black market.
Please please amend NASD Rule 33360 immediately.