posted
There are so many references to SHO in threads, I cannot find which thread contains all the discussion. Probably dates back to late 2004 year or early 2005 year.
Bottom line is the original rule and this new inclusion, changes nothing.
Bid testing is left to brokers / market makers, self-enforcing and no SEC oversight.
If I recall correctly, minimum requirement is a short position of at least ten-thousand shares, a value of fifty-thousand dollars and one-half of one percent of a stock float.
This would require a non-reporting company, like a pink, at ten-thousand shares to have a share price of five dollars per share. Very rare I find a pink with that minimum share price.
Even if a short position is one-hundred-thousand shares this would not qualify as one-half of one percent of the float of an average company which is non-reporting.
There are some other problems. The thirteen day clock can be arbitrarily reset by brokers. Adding to this, a loophole exists which exempts "borrowing" and "bonafide borrowing" for brokers and market makers from the SHO regulation and this new inclusionary extension.
Bottom line, none of these rules change anything; shorting continues as always.
quote:minimum requirement is a short position of at least ten-thousand shares, a value of fifty-thousand dollars and one-half of one percent of a stock float.
--am not yet versed enough for that to ring a bell re quick confirmation
one thing that might help for future reference? I *do* have a "reference thread" on General blah for Newbs blah... posting/reposting valuable links there narrows future searches
fwiw...
-------------------- Nashoba Holba Chepulechi Adventures in microcapitalism...
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posted
Incidently, the I-Hub boys are back to claiming I am a paid basher.
I sit here and read those utterances of idiocy and think, "Our family is worth over four-million dollars, we bring in over a quarter of a million per year and I have more money in my checking account than any one of those boys will save during his entire life."
Why the Hades would I bother with a basically minimum wage job?
quote:Originally posted by T e x: ya, familiar with the 13-day "pass"
this part, sad to say--
quote:minimum requirement is a short position of at least ten-thousand shares, a value of fifty-thousand dollars and one-half of one percent of a stock float.
--am not yet versed enough for that to ring a bell re quick confirmation
one thing that might help for future reference? I *do* have a "reference thread" on General blah for Newbs blah... posting/reposting valuable links there narrows future searches
fwiw...
*bump for late reference thread edit*
-------------------- Nashoba Holba Chepulechi Adventures in microcapitalism...
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Subject to the requirements of SEC Rule 203 of Regulation SHO
Where there is an aggregate fail to deliver position for five consecutive settlement days at a registered clearing agency totaling 10,000 shares or more and equal to at least 0.5% of the issuer’s total shares outstanding.
When this occurs, the security becomes subject to mandatory close-out requirements outlined in the SEC's Regulation SHO.
The allowed value will be:
Y = Yes, if the issue is subject to mandatory close-out requirements of Regulation SHO
N = No, if the issue is NOT subject to mandatory close-out requirements of Regulation SHO Rule 32102 Subject to the requirements of NASD Rule 3210
Where, for five consecutive settlement days, there are aggregate fails to deliver at a registered clearing agency of 10,000 shares or more and the reported last sale during normal market hours would value the aggregate fail to deliver position at $50,000 or more.
When this occurs, the security becomes subject to mandatory close-out requirements outlined in NASD Rule 3210.
The allowed value will be:
Y = Yes, if the issue is subject to mandatory close-out requirements of Rule 3210.
N = No, if the issue is NOT subject to mandatory close-out requirements of Rule 3210.
quote:Originally posted by Purl Gurl: Incidently, the I-Hub boys are back to claiming I am a paid basher.
I sit here and read those utterances of idiocy and think, "Our family is worth over four-million dollars, we bring in over a quarter of a million per year and I have more money in my checking account than any one of those boys will save during his entire life."
Why the Hades would I bother with a basically minimum wage job?
Idiots! Blithering idiots!
Purl Gurl
some threads at I-hub are quite good, even if somewhat clique-ish, which is understandable as they develop their own argot over time; others--many others--are next to worthless. I visited one today re a troubling thread here. Won't say I was shocked by the level of discourse...but disappointing is too mild...
-------------------- Nashoba Holba Chepulechi Adventures in microcapitalism...
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(subtle reference to discovery of LSD in ergot fungus)
_____
On April 4, 2006, the Securities and Exchange Commission (SEC) approved new Rule 3210, Short Sale Delivery Requirements, which applies short sale delivery requirements to those equity securities not otherwise covered by the delivery requirements of Regulation SHO, namely non-reporting OTC equity securities.1 Rule 3210, among other things, requires participants of registered clearing agencies to take action on failures to deliver that exist for 13 consecutive settlement days in certain non-reporting securities. In addition, if the fail to deliver position is not closed out in the requisite time period, a participant of a registered clearing agency or any broker-dealer for which it clears transactions is prohibited from effecting further short sales in the particular specified security without borrowing, or entering into a bona-fide arrangement to borrow, the security until the fail to deliver position is closed out.
____
"...without borrowing, or entering into a bona-fide arrangement to borrow...."
quote:Originally posted by Purl Gurl: Reg SHO Threshold
Subject to the requirements of SEC Rule 203 of Regulation SHO
Where there is an aggregate fail to deliver position for five consecutive settlement days at a registered clearing agency totaling 10,000 shares or more and equal to at least 0.5% of the issuer’s total shares outstanding.
When this occurs, the security becomes subject to mandatory close-out requirements outlined in the SEC's Regulation SHO.
The allowed value will be:
Y = Yes, if the issue is subject to mandatory close-out requirements of Regulation SHO
N = No, if the issue is NOT subject to mandatory close-out requirements of Regulation SHO Rule 32102 Subject to the requirements of NASD Rule 3210
Where, for five consecutive settlement days, there are aggregate fails to deliver at a registered clearing agency of 10,000 shares or more and the reported last sale during normal market hours would value the aggregate fail to deliver position at $50,000 or more.
When this occurs, the security becomes subject to mandatory close-out requirements outlined in NASD Rule 3210.
The allowed value will be:
Y = Yes, if the issue is subject to mandatory close-out requirements of Rule 3210.
N = No, if the issue is NOT subject to mandatory close-out requirements of Rule 3210.
**
I will find the "bonafide borrowing" exemption.
Purl Gurl
I'm guessing this applies to exchange-traded issues, no?
-------------------- Nashoba Holba Chepulechi Adventures in microcapitalism...
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posted
"I'm guessing this applies to exchange-traded issues, no?"
Tex, I would assume so. I know of no mention of shares which are traded (sold or exchanged) off the normal boards. Best I know, this applies only to common shares out in public hands (float).
posted
Tex, had a sportsfishing client say to me " you sure do know a lot about these Salmon, I replied, the more I know, the less I understand.
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posted
"Rounded to the nearest thousands place, the Munchkin Man's five penny stock portfolio, which the Munchkin Man chose for the Munchkin Man Challenge Contest, lost $9,000, between the last trading day in June of 2006 and the last trading day in May of 2006."
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