Enlightening post from the "other" board: -----
Post# of 43066
Posted On: 06/19/2014 7:14:52 PM
Enlightening post from the "other" board:
Psssssst... It can be 100% every single day and it wouldnt mean jackshit. This has been explained a multiple times already, SEC Rule 200 specifically states unless the broker dealer owns or has physical possession of the shares in a trade transaction it has to be marked SHORT no matter if it is a long position trade.
Such Riskless Principal transactions here on the OTC will always be marked short in accordance with SEC Rule 200. Only transactions handled at the Broker level (internalized) can be marked long. Thus why Daily Short Volume is quite meaningless data, unless one is of course posting out the relevant FTD data to show the settlement rate here in JBII. Which looking at the last 3 months is quite boring as it is a typical revolving aggregate, certainly no delivery issues here.
Psssssst... It can be 100% every single day and it wouldnt mean jackshit. This has been explained a multiple times already, SEC Rule 200 specifically states unless the broker dealer owns or has physical possession of the shares in a trade transaction it has to be marked SHORT no matter if it is a long position trade.
Quote:
Rule 200(g) of Regulation SHO requires a broker-dealer to mark sell orders in any equity security as "long" or "short." Rule 200(a) defines a short sale as "any sale of a security which the seller does not own or any sale which is consummated by the delivery of a security borrowed by, or for the account of, the seller." Rule 200(g)(1) provides that "[a]n order to sell shall be marked "long" only if the seller is deemed to own the security being sold pursuant to paragraphs (a) through (f) of this section and either: (i) The security to be delivered is in the physical possession or control of the broker or dealer; or (ii) It is reasonably expected that the security will be in the physical possession or control of the broker or dealer no later than the settlement of the transaction." Rule 200(c) of Regulation SHO provides that a person shall be deemed to own securities only to the extent that he has a net long position in such securities. In addition, to determine its own net position, Rule 200(f) requires a broker-dealer to aggregate all of its positions in a security unless it qualifies for independent trading unit aggregation.
Such Riskless Principal transactions here on the OTC will always be marked short in accordance with SEC Rule 200. Only transactions handled at the Broker level (internalized) can be marked long. Thus why Daily Short Volume is quite meaningless data, unless one is of course posting out the relevant FTD data to show the settlement rate here in JBII. Which looking at the last 3 months is quite boring as it is a typical revolving aggregate, certainly no delivery issues here.
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