Naked Shorting

The PositionWatch naked short module detects conditions where a trader has gone short without correctly marking the trade short.  PositionWatch utilizes the opening positions from the backoffice and then tracks the buys and sells keeping a running total for the day and if they go into a short condition without marking the trade short. When trades are executed by multiple traders to the same inventory, all of the trades will be combined prior to performing the short checks as if they were working on a team and they have to conform to the short rules as a group.

Since market makers can go short without their instruction, PositionWatch ignores SME trades, odd lots and participation trades which cannot trigger a naked short violation. In the below example a pro-trader is performing odd lot and SME (short exempt trades) which do not trigger a naked short violation.

The SME report shows all conditions where the number of shares marked SME exceeds the number of buy shares marked SME. When a exception condition occurs where the SME sell is higher then the SME buy total shares, PositionWatch will also show the total shares bought/sold of all trades for the day as well SME and non-SME totals. The under-bought total shares are shown for each symbol and the value of the under-bought condition which enables the end-users to sort by the "Underbought Value" to investigate those discrepancies of highest values.

Contact Information

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Telephone: (416)642-9043

Email: info@positionwatch.com

About Us

PositionWatch is complete middle office solution providing firms with Position Management,Ticketing,Risk Management ,Compliance and Management Reporting.PositionWatch reduces the ticketing costs and increases the resource efficiencies with seamless integration to all of the backoffices

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