Liquidating overstock trading
Reg SHO requires that organizations such as the NYSE and the NASDAQ publish lists of securities where the organization is the primary listing venue and the security meets Reg SHO threshold requirements indicating a certain level of failures to deliver in that security.
Byrne has grown Overstock to 1500 employees and a market cap of over 0 million.
Patrick Byrne illustrates by hypothetical example the potential problem with CNS: "Goldman submits to the DTCC’s Continuous Net Settlement system that it sold 2,000 shares that it does not deliver.
Imagine Morgan Stanley was on the other side of that particular trade.
Naked short selling is a practice heavily criticized by Byrne and his media project Deep Capture, especially in the middle part of the last decade.
While short selling is normally enabled by the short-seller borrowing shares of the stock they wish to short, naked short selling is the practice of short-selling without having first arranged to borrow the stock, and is technically legal as long as the investor intends to borrow the shares and has reasonable grounds to believe they can be borrowed.