Firms should mark transactions involving hard-to-find stock as short or short-sale exempt, but have not. Those firms have either failed to make the systems enhancements to enable order-marking or are unaware of the requirement for order-marking within Reg SHO....
If a person has a net short position in a security, then a sale of the security by that person will be deemed to be a “short sale” subject to certain rules governing short sales, including, but not necessarily limited to, the “locate” requirement of Rule 203(b)(1...