As we all know, the SEC created a new set of rules for shorting on september 17. After that, they created additional rules prohibiting the shorting of financial stocks, but I want to talk about the 'general' rules, as they were created on september 17. In particular about this one: http://www.sec.gov/news/press/2008/2008-204.htm Can anybody explain what that means ? Does that mean that you can still short naked, but you now HAVE to cover within 3 days ? Or does this mean that from now on, you are not allowed to short naked at all anymore and you need to have the stock borrowed first ?