Unless I have misunderstood the experts, Regulation SHO does nothing to force settlement of naked shorting prior to the effective date of the regulation.

As I understand it.... it is basically tax free income (the selling of the borrowed shares). The SEC has basically said we aren`t requiring settlement, at least not under the requirements of Regulation SHO.

I think that is a crime, by the way. Uncle Sam gets screwed out of the taxes, and the shareholders of small companies loose their investments. Priceless.

Jeff