Post by Bart on Jul 28, 2004 19:05:29 GMT -5
TEXT ;D
Part 1 of 2: Heard from the SEC ....
this is the e-mail sent today.... effective date is a no wino>>>>>> 30 days after January 3, 2005... they gonna get a "bad boys" cd from investors and myself, we gonna get that changed! OH, btw.... sorry for those who have me on iggy! SHORTY IN DEEP STUFF OVER CMKX! BWHAAHAHAHAHAHAH dj
********************************************************
July 28, 2004
Dear Dj:
Thank you for your providing us with your concerns about CMKX.
The Commission is aware of investor concerns about naked short selling, and has taken action in this area. For example, the Commission has brought prior enforcement actions against parties engaging in naked short selling as part of a manipulative scheme. [1[ See, e.g., Rhino Advisors, Inc. and Thomas Badian: Lit. Rel. No. 18003 (February 27, 2003); See also SEC v. Rhino Advisors, Inc. and Thomas Badian, Civ. Action No. 03 civ 1310 (RO) (Southern District of New York).
Below is some information about Regulation SHO as adopted. This was reported in the SEC's 6/23/04 Press Release:
The Securities and Exchange Commission voted to adopt new Regulation SHO under the Securities Exchange Act of 1934. Regulation SHO, which provides a new regulatory framework governing short selling of securities, includes the following.
Rule 202(T), which establishes procedures to allow the Commission to temporarily suspend the operation of the current "tick" test in Rule 10a-1, and any short sale price test of any exchange or national securities association, for specified securities.
Through a separate order, the Commission will suspend, on a pilot basis for a period of one-year, the tick test provision of paragraph (a) of Rule 10a-1, and any short sale price test of any exchange or national securities association, for approximately one-third of stocks in the Russell 3000 index.
The order also will suspend, on a pilot basis for a period of one year, the tick test provision of paragraph (a) of Rule 10a-1 for short sales executed in any security included in the Russell 1000 index after 4:15 p.m. Eastern, and all other securities after the close of the consolidated tape, and until the open of the consolidated tape the next day.
The pilot will commence on January 3, 2005 to permit broker-dealers and self-regulatory organizations to make the necessary programming adjustments.
The Commission deferred consideration of the proposal to replace the current "tick" test of Rule 10a-1 with a new uniform bid test. The Commission could reconsider any further action on these proposals after the completion of the pilot.
Rule 203, which will incorporate current Rule 10a-2 and will create a uniform Commission rule requiring broker-dealers, prior to effecting short sales in all equity securities, to "locate" securities available for borrowing.
There will be limited exceptions from the locate requirement, including for short sales by registered market makers in connection with bona-fide market making.
Rule 203 also imposes additional requirements on designated "threshold securities." Rule 203 defines a threshold security to mean an equity security for which there is an aggregate fail to deliver position for five consecutive settlement days at a registered clearing agency of 10,000 shares or more and that is equal to at least 0.5% of the issue's total shares outstanding.
Where a clearing agency participant has a fail to deliver position in threshold securities that persists for ten consecutive days after settlement, the participant must take action to close out the position. Until the position is closed out, the participant, and any broker-dealer for which it clears transactions, may not effect further short sales in the particular threshold security without borrowing or entering into a bona fide arrangement to borrow the security.
Rule 203 will become effective 30 days after publication with a compliance date of January 3, 2005, to permit firms to make programming and procedural adjustments.
Rule 200, which among other things, will redesignate current Rule 3b-3 with some modifications to define ownership and aggregation of securities positions, and include a requirement to mark all sell orders in all equity securities. Rule 200 will become effective 30 days after publication.
The Commission also adopted amendments to Rule 105 of Regulation M to remove the current shelf offering exception, and issued interpretive guidance addressing sham transactions designed to evade the rule.
The amendment applies to short sales effected within five days prior to the pricing of a shelf offering. Such short sales may not be covered with offering securities purchased from an underwriter or other broker-dealer participating in the offering.
The Rule 105 amendments will be effective 30 days after publication in the Federal Register, and the interpretive guidance will be effective upon such publication.
We cannot tell you whether or not we will-or have already begun to-look into the issues raised in your e-mail about CMKX. This is because the Securities and Exchange Commission conducts its investigations on a confidential basis. We also cannot provide you with updates on the status of your complaint. We know this policy can be frustrating, but it protects the integrity of our investigative process and preserves the privacy of the individuals and entities involved.
Sincerely,
Ann H. Sulzberg
Special Counsel
U.S. Securities and Exchange Commission
Be right back with part two.
Part 1 of 2: Heard from the SEC ....
this is the e-mail sent today.... effective date is a no wino>>>>>> 30 days after January 3, 2005... they gonna get a "bad boys" cd from investors and myself, we gonna get that changed! OH, btw.... sorry for those who have me on iggy! SHORTY IN DEEP STUFF OVER CMKX! BWHAAHAHAHAHAHAH dj
********************************************************
July 28, 2004
Dear Dj:
Thank you for your providing us with your concerns about CMKX.
The Commission is aware of investor concerns about naked short selling, and has taken action in this area. For example, the Commission has brought prior enforcement actions against parties engaging in naked short selling as part of a manipulative scheme. [1[ See, e.g., Rhino Advisors, Inc. and Thomas Badian: Lit. Rel. No. 18003 (February 27, 2003); See also SEC v. Rhino Advisors, Inc. and Thomas Badian, Civ. Action No. 03 civ 1310 (RO) (Southern District of New York).
Below is some information about Regulation SHO as adopted. This was reported in the SEC's 6/23/04 Press Release:
The Securities and Exchange Commission voted to adopt new Regulation SHO under the Securities Exchange Act of 1934. Regulation SHO, which provides a new regulatory framework governing short selling of securities, includes the following.
Rule 202(T), which establishes procedures to allow the Commission to temporarily suspend the operation of the current "tick" test in Rule 10a-1, and any short sale price test of any exchange or national securities association, for specified securities.
Through a separate order, the Commission will suspend, on a pilot basis for a period of one-year, the tick test provision of paragraph (a) of Rule 10a-1, and any short sale price test of any exchange or national securities association, for approximately one-third of stocks in the Russell 3000 index.
The order also will suspend, on a pilot basis for a period of one year, the tick test provision of paragraph (a) of Rule 10a-1 for short sales executed in any security included in the Russell 1000 index after 4:15 p.m. Eastern, and all other securities after the close of the consolidated tape, and until the open of the consolidated tape the next day.
The pilot will commence on January 3, 2005 to permit broker-dealers and self-regulatory organizations to make the necessary programming adjustments.
The Commission deferred consideration of the proposal to replace the current "tick" test of Rule 10a-1 with a new uniform bid test. The Commission could reconsider any further action on these proposals after the completion of the pilot.
Rule 203, which will incorporate current Rule 10a-2 and will create a uniform Commission rule requiring broker-dealers, prior to effecting short sales in all equity securities, to "locate" securities available for borrowing.
There will be limited exceptions from the locate requirement, including for short sales by registered market makers in connection with bona-fide market making.
Rule 203 also imposes additional requirements on designated "threshold securities." Rule 203 defines a threshold security to mean an equity security for which there is an aggregate fail to deliver position for five consecutive settlement days at a registered clearing agency of 10,000 shares or more and that is equal to at least 0.5% of the issue's total shares outstanding.
Where a clearing agency participant has a fail to deliver position in threshold securities that persists for ten consecutive days after settlement, the participant must take action to close out the position. Until the position is closed out, the participant, and any broker-dealer for which it clears transactions, may not effect further short sales in the particular threshold security without borrowing or entering into a bona fide arrangement to borrow the security.
Rule 203 will become effective 30 days after publication with a compliance date of January 3, 2005, to permit firms to make programming and procedural adjustments.
Rule 200, which among other things, will redesignate current Rule 3b-3 with some modifications to define ownership and aggregation of securities positions, and include a requirement to mark all sell orders in all equity securities. Rule 200 will become effective 30 days after publication.
The Commission also adopted amendments to Rule 105 of Regulation M to remove the current shelf offering exception, and issued interpretive guidance addressing sham transactions designed to evade the rule.
The amendment applies to short sales effected within five days prior to the pricing of a shelf offering. Such short sales may not be covered with offering securities purchased from an underwriter or other broker-dealer participating in the offering.
The Rule 105 amendments will be effective 30 days after publication in the Federal Register, and the interpretive guidance will be effective upon such publication.
We cannot tell you whether or not we will-or have already begun to-look into the issues raised in your e-mail about CMKX. This is because the Securities and Exchange Commission conducts its investigations on a confidential basis. We also cannot provide you with updates on the status of your complaint. We know this policy can be frustrating, but it protects the integrity of our investigative process and preserves the privacy of the individuals and entities involved.
Sincerely,
Ann H. Sulzberg
Special Counsel
U.S. Securities and Exchange Commission
Be right back with part two.