Rhonda Banks Comment On Regulatory Notice 21-19
Short Sale Rule should be changed to state that if a stock is shorted ten percent from the previous day's close,, NO shorting is allowed from that moment until the end of the next trading day. It is rediculous to allow shorting at all beyond that ten percent mark as it solely benefits the wealthy institutions who can afford to continue to drive a price down when retail investors are buying stock. It intentionally harms retail investors. Also, short sale date should be reported in real time or at leasts daily. Finally, instead of penalty fees as a punishment (for illegal shorting/naked shorting/concealing or failing to report short sale data), which are pocket change to large institutions/hedge funds/etc, the penalty for illegal activity should be suspension of trading for a period of time, increasing with each offense. If companies cannot trade or short for 7, 14, 21, oe 30 days,, they will likely suffer harsher losses and not be as likely to repeat offenses. Finally, returning shares and then borrowing shares again to short the same stock should not be allowed in the same trading day. It simply manipulates the short interest data that is provided to the public. It is also being used to create inaccurate, fear stoking reactions from the public.....i.e. maipulation of traders through selective publishing of information through the media.