Posted On: 04/09/2016 4:00:43 PM
Post# of 72447
The problem is the useless participation of the DTCC. With today's technology, matching short positions with loaned shares should be a seamless process. Several possible solutions come to mind and I am sure that others more knowledgeable than myself could do better. One possible solution would be to require all short sales of US stocks to be settled immediately by the brokerage with pre-identified shares. No shares available to borrow, no short sale.
"Exactly -- they don't WANT to do anything about it because they are toothless, thanks to the actions of Wall Street which has blocked legislation which would allow them to enforce existing laws (if the top people wanted to, which they don't).
And of course, FINRA could give the total short position data for every stock, every day, instead of every 2 weeks, if they WANTED to. But they don't want to, because that would make it too hard for their best clients to continue with profitable (for the market makers and clients) abusive naked shorting." - Drano
"Exactly -- they don't WANT to do anything about it because they are toothless, thanks to the actions of Wall Street which has blocked legislation which would allow them to enforce existing laws (if the top people wanted to, which they don't).
And of course, FINRA could give the total short position data for every stock, every day, instead of every 2 weeks, if they WANTED to. But they don't want to, because that would make it too hard for their best clients to continue with profitable (for the market makers and clients) abusive naked shorting." - Drano
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