cudeco(cdu) limited - representations, page-6

Hi maxw, it is good to see your persistence with ASIC, but I continue to be concerned with the attitude towards short selling. Shot selling is legal, and there is rationale towards it. As has been pointed out here many times, if you consider a stock to be too highly priced you can short sell that stock.So the problem is not the short selling but THE FACT THAT THEY ARE NOT COVERING WITHIN THREE DAYS. IN OTHER WORDS, THAT THE DOWNWARD PRESSURE OF SHORT SELLING IS NOT EQUALLED WITH UPWARD PRESSURE OF HAVING TO BUY BACK IN THREE DAYS. THEY HAVE FOUND A WAY AROUND IT.
Heaven forbid if we front up to the senate inquiry, and not make that clear, as indeed you should do when you write to ASIC. If we need a fancy market with short selling and put and call option, so be it, but having found a way around having to cover in three days must surely be a sigh for the regulator to tighten the rules about short selling.
I may well be a fair conclusion to stop short selling, purely on the basis that the big end of town are constantly looking for ways do dodge the rules to their own advantage, and a senate enquiry may come to that conclusion, but only if that is presented to them as such, as short selling on it's own is not the problem.