Comments on: SEC Must Constrain Abusive Short Selling http://blogs.law.harvard.edu/corpgov/2009/06/25/sec-must-constrain-abusive-short-selling/ Sponsored by the HLS Corporate Governance Program Mon, 23 Nov 2009 18:31:21 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: vincent hockmeyer http://blogs.law.harvard.edu/corpgov/2009/06/25/sec-must-constrain-abusive-short-selling/comment-page-1/#comment-326992 vincent hockmeyer Fri, 31 Jul 2009 21:54:58 +0000 http://blogs.law.harvard.edu/corpgov/?p=2164#comment-326992 Mr Herlihy: I believe you should have emphasized more the requirement for hard borrows. In addition, if the shares that are being shorted are never delivered because the short covered in T+2, then you have the equivalent of free-riding. Manipulators can flood the market with phantom shares and, as long as they close out the position before required delivery, they are free-riding (As you know, purchasers of stock have to deliver the money within T+3 whether or not they sell their position in less than T+3)I.e. free riding. I believe if the uptick rule is reinstated AND hard borrows are required, circuit breakers will not be needed. By the way, I recently retired from the brokerage industry. It was a premature retirement, as I could not, in good faith, recommend that anyone invest their money in our markets. I have been aware of the naked short, hatchet job strategies of the hedge funds and others for about 5 years now. What has happened is disgraceful. If it isn't stopped we are in serious trouble. Thanks for your efforts. Vincent Hockmeyer Nashua, NH Mr Herlihy: I believe you should have emphasized more the requirement for hard borrows. In addition, if the shares that are being shorted are never delivered because the short covered in T+2, then you have the equivalent of free-riding. Manipulators can flood the market with phantom shares and, as long as they close out the position before required delivery, they are free-riding (As you know, purchasers of stock have to deliver the money within T+3 whether or not they sell their position in less than T+3)I.e. free riding.

I believe if the uptick rule is reinstated AND hard borrows are required, circuit breakers will not be needed.

By the way, I recently retired from the brokerage industry. It was a premature retirement, as I could not, in good faith, recommend that anyone invest their money in our markets. I have been aware of the naked short, hatchet job strategies of the hedge funds and others for about 5 years now. What has happened is disgraceful. If it isn’t stopped we are in serious trouble.

Thanks for your efforts.
Vincent Hockmeyer
Nashua, NH

]]> By: Jacqulyn Hooper http://blogs.law.harvard.edu/corpgov/2009/06/25/sec-must-constrain-abusive-short-selling/comment-page-1/#comment-288051 Jacqulyn Hooper Thu, 25 Jun 2009 19:10:44 +0000 http://blogs.law.harvard.edu/corpgov/?p=2164#comment-288051 Not enough has changed in naked short selling practices. I would like to see no naked short selling. I would like to see the rules obeyed. Good luck with your efforts to really change the rules,and make them work like they should work and not be ignored. Not enough has changed in naked short selling practices. I would like to see no naked short selling. I would like to see the rules obeyed.
Good luck with your efforts to really change the rules,and make them work like they should work and not be ignored.

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