July 20, 2006
The "grandfathering" clause of Regulation SHO has been a
cruel joke foisted upon the investing public by the SEC
that has cost investors untold billions. In order to provide some balance the following changes need to be enacted:
1. Immediately cancel the grandfather portion of Reg
SHO and require buy-ins of all FTDs from January 1,
2005, forward to the present. The SEC did not have
the authority to forgive FTDs
2. Require a locate for any borrowed stock prior to
the loan of stock.
3. Require settlement of the trade in T+3 with no
cash released until locate completed.
4. Refocus the mission of the SEC toward integrity
and trust in protecting shareholders interest, not
big brokerage houses or hedge funds