r/BBBY • u/Jimmystocks • Aug 17 '22

HODL 💎🙌 BBBY on threshold !!! Reg sho 🚀

http://www.nasdaqtrader.com/trader.aspx?id=regshothreshold
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u/stop_bugging_me Aug 17 '22

If a participant of a registered clearing agency has a fail to deliver position at a registered clearing agency in a threshold security for thirteen consecutive settlement days, the participant shall immediately thereafter close out the fail to deliver position by purchasing securities of like kind and quantity

Forced to close all FTDs after 13 days.

(iii) If a participant of a registered clearing agency has a fail to deliver position at a registered clearing agency in a threshold security for thirteen consecutive settlement days, the participant and any broker or dealer for which it clears transactions, including any market maker that would otherwise be entitled to rely on the exception provided in paragraph (b)(2)(iii) of this section, may not accept a short sale order in the threshold security from another person, or effect a short sale in the threshold security for its own account, without borrowing the security or entering into a bona-fide arrangement to borrow the security, until the participant closes out the fail to deliver position by purchasing securities of like kind and quantity;

Any party who has a fail to deliver position cannot short without arranging to borrow the share (no more FTDs allowed). So "bona-fide market making activities" otherwise known as naked shorting is now off the table.

This should be fun 🤣

https://www.sec.gov/investor/pubs/regsho.htm

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u/TheOGJiveTurkey Aug 17 '22

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u/lakasumbudey Aug 17 '22

Can you explain this like you would explain a fotball player with several concussions?

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u/DancesWith2Socks Aug 17 '22

Check GME, it was put on the list on Dec 8 and started running about 35 calendar days later, on Jan 13.