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Whatever happened to Katherine McPhee?Just to clea

Posted on July 28, 2008

Whatever happened to Katherine McPhee?Just to clear up the Market Maker exemption to the New Shorting Rules. They can still locate before firmly borrowing the shares. BUT they still must deliver by settlement date and are subject to buy-ins if they fail. Same as everyone else. So thus if someone goes to the option marketplace and buys puts or uses put/call combos in lieu of actually shorting stock himself, the option MM's are now in there shorting stock, as opposed to the Naked Shorter. If his clearing firm tells him he can borrow the shares, the MM's obligation is done. If the clearing firm...

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puts , short selling