d_teller

A First Look At How the SEC's Rules Are Working

I agree with the views of captainccs, above.

A number of other securities, including some that are represented by pink sheet listings, which are their U.S. equivalents of Cdn (Toronto) listings, have been and are under naked short pressure, to attempt to drive the price down, and create a "fire-sale".

They aren't financials, or investment types, but ATP/UN.TO (ATPWF) is one example. At one point this Spring, it had short positions over 12-fold its total shares available...It's a CanRoy Ute of U.S. power plants. So the company decided to use some of its large cash holdings to buy back some shares at depressed prices.

Until the SEC and their Cdn counterparts get sufficient data, staff and gov't support, this "naked shorting", by which large capitalized groups, such as hedge funds and other private equity groups, as well as Turquoise and other systems set up to avoid scrutiny,...this illegal activity...will continue. The naked shorting actually causes significant problems for those smaller traders, that follow the rules to borrow shares to sell short.

Another issue that comes to my naive mind, is the shorting of ETFs and other large funds...that actually hold the commodities...Such as GLD, IAU, SLV, etc. Not the ones that are futures-based. How could the government regulators be blind to the massive shorting, when physical delivery of the assets has been very difficult...there's been a lot of blogging about central bank or SWF manipulation of these ETFs,
but at some point the inverse Ponzi scheme will detonate.