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As of 2008, options market makers are not allowed to naked short. [0] The only remaining exemptions to restrictions on naked short selling are for equity market
by s28l 4y ago
As of 2008, options market makers are not allowed to naked short. [0] The only remaining exemptions to restrictions on naked short selling are for equity market makers. These market makers are still subject to delivery requirements (T+2). Plus, most/all aim to end each day flat
[0] section III of https://www.sec.gov/investor/pubs/regsho.htm https://www.sec.gov/investor/pubs/regsho.htm