The former Wildcat Exploration Ltd HUB On AGORACOM
The company is now known as FUSE Cobalt.
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Ever wonder where those short shares are borrowed from..... Who in their right mind would lend their shares to someone who's intent was to reduce the value of your investment!
From an artical on naked short selling/ Celar boxing:
In fact, until the "beefed up" version of Rule 3370 (Affirmative determination in writing of "borrowability" by settlement date) becomes effective, U.S. MMs have been "legally" processing naked short sale orders out of Canada and other offshore locations even though they and the clearing firms involved knew by history that these shares were in no way going to be delivered. The question that then begs to be asked is how "the system" can allow these obviously bogus sell orders to clear and settle. To find the answer to this one need look no further than to Addendum "C" to the Rules and Regulations of the NSCC subdivision of the DTCC. This gaping loophole allows the DTCC, which is basically the 11,000 b/ds and banks that we refer to as "Wall Street”, to borrow shares from those investors naive enough to hold these shares in "street name" at their brokerage firm. This amounts to about 95% of us. Theoretically, this “borrow” was designed to allow trades to clear and settle that involved LEGITIMATE 1 OR 2 DAY delays in delivery. This "borrow" is done unbeknownst to the investor that purchased the shares in question and amounts to probably the largest "conflict of interest" known to mankind. The question becomes would these investors knowingly loan, without compensation, their shares to those whose intent is to bankrupt their investment if they knew that the loan process was the key mechanism needed for the naked short sellers to effect their goal? Another question that arises is should the investor's b/d who just earned a commission and therefore owes its client a fiduciary duty of care, be acting as the intermediary in this loan process keeping in mind that this b/d is being paid the cash value of the shares being loaned as a means of collateralizing the loan, all unbeknownst to his client the purchaser.
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In reference to my post on CIBC.
Who is the real client....?
This is conflict of intrest, Fraud, and a breach of trust for those clients, IE holders of stocks within CIBC trading accounts.
The borrow/ lending is done via Clause 10 on page 11 of the customer agreement one accepts when you make your first trade...
Anyone up for a billion dollar class action against CIBC.... SGR shareholders have a very good case pretaining to the placement undertaken a couple years back.
JMHO
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CIBC Mellon to use EquiLend
2009-09-30 10:48 ET - News Release
Mr. David Bauer reports
CIBC MELLON ADOPTS EQUILEND TO ENHANCE EFFICIENCY IN SECURITIES LENDING TRANSACTIONS
Canadian Imperial Bank of Commerce's CIBC Mellon Global Securities Services Company will implement EquiLend's suite of services to encourage greater efficiency in securities borrowing and lending, and to increase revenue potential for its clients.
"EquiLend is a global standard in securities lending automation technology," said James Slater, senior vice-president and head of capital markets, CIBC Mellon. "By introducing EquiLend's AutoBorrow and Trade2O capabilities to our desk, securities borrowers can expect to enjoy more efficient lending through a familiar interface, and we expect this will drive higher lending volumes for our clients."
CIBC Mellon has relied on EquiLend's back-office solutions since 2007 and the company is expanding its partnership by implementing EquiLend's new services. This decision follows EquiLend's announcement that it has received regulatory approval from the Investment Industry Regulatory Organization of Canada to operate as an alternative trading system in Ontario.
Used by securities borrowers and lenders throughout the world, the EquiLend platform automates formerly manual trading and posttrade processes. With the adoption of AutoBorrow and Trade2O, CIBC Mellon is confident that it will improve efficiency for borrowers, reduce operational risks in securities lending transactions through greater straight through processing and increase the attractiveness of its clients' lendable assets to borrowers around the world.
CIBC Mellon is 50-50 jointly owned by Canadian Imperial Bank of Commerce and BNY Mellon. CIBC Mellon Global Securities Services Company is a leading provider of financial services for institutions and corporations, providing superior asset servicing, multicurrency accounting, information delivery, securities lending and foreign exchange services in Canada. CIBC Mellon is part of BNY Mellon, which has $20.7-trillion (U.S.) in assets under custody and administration and more than $926-billion (U.S.) in assets under management.
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