The ridiculous naked short sale changes the SEC announced on Tuesday, are apparently not operationally doable, in addition to being useless from a market impact standpoint.
The SEC said they would grant some leniency to certain market makers who sell stocks short, responding to pressure from fund managers and brokerages to clarify how new restrictions on the practice would work, according to FT.
”The staff is recommending exceptions to the short sale order for market makers of the 19 stocks and their derivatives from arranging to borrow in advance for short sales in their marketmaking and related hedging activities, to avoid constraining the market makers’ provision of liquidity,” SEC spokesman John Nester said by e-mail.
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