4 ms·
>Naked Shorting is illegal. Unless you're a market maker and thus exempt from the regulation, because your market making function requires buying and selling l
by jaycroft 6y ago
>Naked Shorting is illegal.
Unless you're a market maker and thus exempt from the regulation, because your market making function requires buying and selling lots and lots of unsettled shares in order to provide liquidity.
- a-posteriori 6y agoI'm curious if you have any more information on this, not in a snarky way, just curious.
- jaycroft 6y agoSorry it took so long to get back to you with an answer! Also no snark detected. Here is a nice overview by the SEC but it's really light on the details. https://www.sec.gov/investor/pubs/regsho.htm#_ftn4 https://www.sec.gov/investor/pubs/regsho.htm#_ftn4 You can also look through FINRA's regulations here: https://www.finra.org/rules-guidance/rulebooks https://www.finra.org/rules-guidance/rulebooks The wikipedia article on Regulation SHO is also fairly relevant: https://en.wikipedia.org/wiki/Naked_short_selling#Regulation_SHO https://en.wikipedia.org/wiki/Naked_short_selling#Regulation... It's pretty long and tedious and not really targeted to your question though. I'll try to remember to post a better resource here when I find one.