Florida Firm Exposed for Naked Shorts?

TradeStation Securities may be staring in the face of fines for about 170 or so improper naked short sales by its daytrading customers, The Street.com reports.

TradeStation Securities may be staring in the face of fines for about 170 or so improper naked short sales by its daytrading customers, The Street.com reports. The NASD has notified the Plantation, Fla.-based online brokerage that over a two-month period in 2004 some of the clients of the firm with the slogan “The leader in rule-based trading” may have broken some rules by engaging in naked shorting and allegedly making trades without “affirmative determination” that the firm could either “receive delivery of the security on behalf of the customer” or “borrow the security on behalf of the customer.” The firm could be on the hook for penalties stemming from the approximately 172 improper short trades.