July 18, 2008
Gentlemen, please understand that this naked short selling mess afflicts myriads of small cap companies destroying their value and plundering their shareholders It is not just a big cap phenomenon.....
Require the Broker Dealer to buy in one day past the fail date if the hedge fund has not yet delivered the borrowed shares "sold short". Otherwise there is no enforcement of the fail date and naked short selling goes on unabated.
Secondly, Primary Dealers should not be exempted: Allow them up to 21 days before mantatory buy in. That period is long enough for their function, yet ensures their being held to short selling restrictions.
Last, close off the use of foreign exchanges to circumvent short selling restrictions for US listed companies....
Thank you.