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Subject:  OT: 1st threshold list & naked shorting Date:  1/7/2005  9:55 PM
Author:  rookieJoe Number:  43932 of 78165

Anyone follow heavily shorted stocks? I have a small long position in one that made the threshold list (NFI).

A while back a regulation was passed referred to SHO. It is intended to control naked shorting (that's when a stock is shorted without shares being borrowed first). Naked shorting results in failure to deliver the shares.

The new regulation defines threshold securities as: any equity security that for which there is an aggregate failure to deliver position for 5 consecutive settlement days of 10,000 shares (or .5%) or more.

While on the threshold security list, any failure to deliver that persists for 13 days must immediately be close