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FYI- - courtesy John Lothian's Newsletter:
TradeStation Caught Up in Shorting Probe
The NASD alleges up to 200 violations by its customers.
Securities regulators are moving to crack down on an online brokerage for
allegedly permitting a controversial Wall Street trading practice called
"naked shorting.'' Online brokerage TradeStation (TRAD:Nasdaq -
commentary - research - Cramer's Take) recently disclosed that regulators at
the NASD have notified the firm that some of its customers may have engaged
in improper short sales. The Florida-based brokerage said in a filing that
regulators could fine the firm for nearly 200 infractions that took place in
2004. An official with TradeStation, a brokerage geared to daytraders,
declined to comment. A NASD spokesman also declined to comment. Last year,
the NASD and other securities regulators announced they were conducting a
broad inquiry into allegations of improper shorting on Wall Street. The
regulators are specifically trying to determine whether brokerages are
complying with a new series of regulations designed to prevent abusive
short-selling, such as naked shorting.
http://www.thestreet.com/_tscrss/stocks/brokerages/10269303.html
Regards, Jack.
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