Talk:Short sale

From Riski

• Earlier this month the New York Stock Exchange wrote to the SEC to complain about the use of pre-routing display strategies by dark pool operators such as Bats, Direct Edge and Nasdaq OMX, that are designed to give their users an advanced peek at unfilled orders ahead of the wider market.

In a letter to the SEC, Nyse's legal counsel Janet Kisane says that the delay in shipping orders flies in the face of Reg NMS which was introduced to guarantee best execution at the best price as soon as orders became available.

• Merrill accused of short selling in customer account Source: The Age, June 30, 2009

As revealed by BusinessDay last month, Mr Waterhouse alleges that Merrill Lynch seized control of his options trading account, called How Trading, in January last year and used it to short-sell $55 million of shares in Australia's Big Four banks and mining giant BHP Billiton.

That was done, according to Mr Waterhouse, in full knowledge of an "awful" announcement about the bank's subprime mortgage exposure in the US that was due to be released in days.

• "Predatory algo trading".... "toxic order flow"... agency brokerage Themis Trading's whitepaper on electronic trading and order routing, volatility, trade volumes and predatory algos.