The SEC announcement is a tremendous development, and a huge step in the direction of responsible Short Sale Governance.
Jersey City, NJ (PRWEB) July 15, 2008
Today, the Chairman of the Securities and Exchange Commission, Christopher Cox, told the Senate Banking Committee that the agency will invoke emergency action requiring short-sellers to pre-borrow shares of Fannie Mae and Freddie Mac prior to executing a short sale. Such a move will protect the mortgage giants from huge sell-offs in their stocks.
LocateStock.com is the only third party software provider of real-time, pre-borrow locates available to the U.S. Capital Markets.
The securities identified in the Commission's order:
Company Ticker Symbol(s)
BNP Paribas Securities Corp. BNPQF or BNPQY
Bank of America Corporation BAC
Barclays PLC BCS
Citigroup Inc C
Credit Suisse Group CS
Daiwa Securities Group Inc DSECY
Deutsche Bank Group AG DB
Allianz SE AZ
Goldman, Sachs Group Inc GS
Royal Bank ADS RBS
HSBC Holdings PLC ADS HBC and HSI
J. P. Morgan Chase & Co. JPM
Lehman Brothers Holdings Inc LEH
Merrill Lynch & Co., Inc MER
Mizuho Financial Group, Inc MFG
Morgan Stanley MS
UBS AG UBS
Freddie Mac FRE
Fannie Mae FNM
In the Spring of 2006, Trader Magazine quoted the founder and Chief Executive of LocateStock.com, John Tabacco, explaining that because LocateStock.com partners actually borrow the securities, or have proprietary inventory, the locate is as firm as can be. Mr. Tabacco also noted two years ago that regulation is moving in the direction of demanding a pre-borrow.
Today, Mr. Tabacco's words are even more relevant. "The SEC announcement is a tremendous development, and a huge step in the direction of responsible Short Sale Governance."
Mr. Tabacco added that the new direction by the SEC punctuates the LocateStock model, which has been engaged in pre borrowing shares since 2005. "Never before has our corporate slogan been more apropos."
Mr. Tabacco reminds short sellers not to get caught naked and to use LocateStock.com.
LocateStock.com is the premier electronic securities lending company providing revolutionary, real-time, hard-to-borrow stock locates and market data to hedge funds and professional traders seeking an efficient and private way to borrow stock associated with short sales.
To learn more about hard-to-borrow stocks please visit http://www.LocateStock.com.
CONTACT: pressrelease @ locatestock.com / 201-332-6800
SOURCE: Locate Stock, LLC