Howdy ICE, Well on the CBOT your relative would b

Howdy ICE,

Well on the CBOT your relative would be trading futures or options on futures which have a derivative style expiry schedule (typically once a month for most products, on a specific day - for example "The business day prior to the 15th calendar day of the contract month.").  So, on that day when the contract expires, everybody's position in the expiring contract month is closed out.  Due to margin though, they have to exchange cash with the clearer on a daily basis, so gains or losses aren't realized all at once when the contract expires.

For equity shorts, I honestly know a lot less about it.  Smitter laid out a detailed explanation recently, but what I was trying to identify is whether a market maker could be "abusive naked shorting" EEDG, essentially diluting it out of existence with non-delivered shares.  As far as i know, retailers don't have the opportunity to "non deliver" shares, but MM's do.  As long as a security is reporting to the SEC though, they're eligible to be on the "threshold securities list" which is a list of shares with non-delivered shares for over 5 days.

http://www.otcmarkets.com/marketActivity/reg-sho-otc

In any case, I think we're good on that.  It doesn't look like naked shorts dragging us down.