RE:RE:RE:Finally shorts getting screwed over !!!This primarily has to do with selling/writing naked options. I guess, it will have an effect on big leveraged bets in either direction, but as for the shorting on actual stock, it really doesn't do anything.
That being said, i think its a postive that leveraged speculation will become more scrutinized/expensive.
fellowship wrote: Chris007 wrote: How exactly does it "screw the shorts"? it really doesn't have anything to do with restricting the shorting of stocks, but rather beefed up regulation of liquidity requirements in regard to options settlement
You can see the actual docs on dtcc website:
https://www.dtcc.com/legal/sec-rule-filings.aspx NSCC-2021-002 If anything, i guess, it will make brokers more stringent in regard liquidty requirements and leverage long or short
Liquidity is the main goal here like you said and also the avoidance of covering by adding
an extra layer of daily checking. So if you are not liquid enough you cannot hold your short position because SEC is gonna getcha.