I am new to equities trading, I shorted a stock, in this case may have been a financial stock WFC(wells fargo bank). Couple of days later I received the following email from my broker(see below, starts with IMPORTANT REMINDER). I read through the following sec press release. http://www.sec.gov/news/press/2008/2008-204.htm However I am still not clear, I thought that my short sale is just an 'ordinary' short sale, that my broker has already borrowed this stock and added it to their inventory. How is this 'failure to deliver' my responsibility? I would greatly appreciate if anyone can help me explain what is being said here. Thanks. >>>and there is a failure-to-deliver on the securities you shorted by settlement date (T+3), we will close out your short position no later than T+4.<<< ======================================= IMPORTANT REMINDER: Hard T+3 Close-Out Requirement This message will serve as an important reminder that the "enhanced delivery requirements" adopted last year by the Securities and Exchange Commission ("SEC") are still in force. This means that if you sell an equity security short, and there is a failure-to-deliver on the securities you shorted by settlement date (T+3), we will close out your short position no later than T+4. You are reminded that you will receive NO FURTHER NOTICE prior to our closing out of any positions in compliance with the SEC Order. Also, any losses suffered or lost opportunities realized as a result of any such buy-ins to comply with the SEC orders will be solely your financial responsibility.