Selective Transparency: Who is the SEC Really Protecting

Discussion in 'Wall St. News' started by patchie, Oct 20, 2008.

  1. I got one coming out in the spring. I'm calling it, "I've Been Fucked".
     
    #11     Oct 20, 2008
  2. AMGLLC

    AMGLLC

    . . . legally, whether they are good or "shitty" stocks as you so suggest.

    Simple rule change, obtain a "locate" before you are allowed to place the trade. Balance the playing field, nothing more, nothing less.

    AMG
     
    #12     Oct 20, 2008
  3. patchie

    patchie

    I totally disagree here. The locate creates opportunity for failure. The only safe solution for both the short seller and the markets is a hard borrow before the trade. The hard borrow will eliminate the "multiple use of a locate" since the locate does not turn into a borrow until T+2. The hard borrow will likewise eliminate teh potential for settlement failure and all the extra curricular activities that are required thereafter.

    securities laws should be straight forward so that failure of such laws are easily detected and actions taken. Locate requirements require audits to identify where a locate was not achieved. These are delayed responses that allow for the manipulation and profits to be achieved long before fraud is detected.

    In a hard borrow, failed trades show up immediately on T+3, identifying who owns the fail. Regulators know exactly where to go for the answers as to why a fail was achieved.
     
    #13     Oct 21, 2008