SEC Follow Up Exhibits Part C SEC_OEA_FCIC_001760-2501

Fallon, Zachary
From: Edwards, Amy K.
Sent: Monday, September 29, 2008 3:17 PM
To: Crane, Victoria L.; McCormick, Tim
Cc: Tao, Josephine J.; Mayhew, Stewart
Subject: RE: Rules without Teeth
Attachments: NewThresholdStocks.htm
NewThresholdStock
s.htm (765 KB...
Tory,
Here is a spreadsheet with all the clearing member fails in these eight names since
September 10th. I did just a quick eye-ball analysis of large fails in the interest of
time. I did not estimate the fails as a % of shares outstanding, given the time
constraints.
There are a lot of fails in general with the majority of clearing members not showing up
for more than a few days. There were also some large fails that could have contributed to
the threshold status, but occurred in the few days before T+3 went into effect. I believe
that these are subject to T+13, which has not come up yet, closeout at the earliest.
KEYPRG and RGAA are both likely to be on the threshold list solely because of later
closeouts.
BACPRJ has one clearing member with large fails, 0573A (DB). The fail started before the
effective date of T+3, but increased shortly afterward. I'm not sure if the increase
occurred on time if the first settlement date for T+3 was after 9/18.
DSL had two clearing members that appear slow to close out: 0050A (MS) and 0161A (ML).
FIG had three slow clearing members: 0158A (Ridge), 0551A (ML), and 0642A (UBS).
USBPRL had one slow clearing member: 0771A (William Blair)
WHI had two clearing member with large fails prior to the T+3 rule and one large slow
clearing member post-T+3: 0355A (CS)
WM had a whole bunch of clearing members with large fails prior to T+3 and three potential
slow clearing members post T+3: 0234A (Penson), 0696A (Cantor), 2154 (??).
I can't say that anything on here is a definite violation of T+3. But even after all of
the transition periods have passed, new stocks can still show up on the threshold list
with no rule violations.
Amy
-----Original Message-----
From: Crane, Victoria L.
Sent: Monday, September 29, 2008 1:17 PM
To: McCormick, Tim; Edwards, Amy K.
Cc: Tao, Josephine J.
Subject: FW: Rules without Teeth
Tim:
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