Large cap its not an issue because its highly regu
Post# of 22940
Posted On: 08/24/2016 9:41:36 AM
Large cap its not an issue because its highly regulated. Its only an issue down here in OTC where anything goes.
Yes OTC is an automated system so the computers are trusting the brokers to abide by the rules. But you get overseas brokers who have found loop holes in the system and offer NSS. Nothing can be done to prevent it on the retail side. Remember when they are naked shorting they are not borrowing shares from anyone. They are simply selling shares they do not own. Maybe they will at some point purchase them and replenish the market, maybe not. Its when they dont replenish them its an issue. So it doesnt matter if you lock a sell order in or not, the MM will NSS stock even if there are not shares to borrow.
Yes OTC is an automated system so the computers are trusting the brokers to abide by the rules. But you get overseas brokers who have found loop holes in the system and offer NSS. Nothing can be done to prevent it on the retail side. Remember when they are naked shorting they are not borrowing shares from anyone. They are simply selling shares they do not own. Maybe they will at some point purchase them and replenish the market, maybe not. Its when they dont replenish them its an issue. So it doesnt matter if you lock a sell order in or not, the MM will NSS stock even if there are not shares to borrow.
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(2)Trans-Pacific Aerospace (TPAC) Stock Research Links
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