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A comment on Naked shorting: The curious incident of the shares that didn't exist (2005). Parent comment

Re:Naked shorting: The curious incident of the shares that d... by jaycroft on Sunday January 31, 2021 @07:24PM (#25984130)
>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.

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Re:Naked shorting: The curious incident of the shares that d... by a-posteriori on Wednesday February 03, 2021 @06:54PM (#26020866)
I'm curious if you have any more information on this, not in a snarky way, just curious.
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Re:Naked shorting: The curious incident of the shares that d... by jaycroft on Thursday February 11, 2021 @06:42PM (#26109053)
Sorry 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

You can also look through FINRA's regulations here:

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...

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.

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