What is CAMM?

CAMM is the Coalition Against Market Manipulation.

Goal of CAMM

• The goal of the coalition is to help prevent market manipulation, including naked short selling and other abusive market conduct. CAMM does not oppose legitimate short selling, only illegal naked short selling.



• In the short term, CAMM supports the efforts of the SEC and the new rules issued in October 2008.



• However, CAMM believes the rules need further strengthening to include the following:
  
  
  • Pre-Borrow: Require that prior to a executing a short sale, a seller must have a legally enforceable right to deliver by the delivery date the shares that are to be shorted (like has been done in Hong Kong, Japan, Switzerland, etc.).
  
  
  
  • Disclose: Promote transparency by requiring timely public disclosure of the true volume of all failures-to-deliver (including those that occur “ex-clearing”).
  
  
  
  • Track: Provide for cradle-to-grave trade tracking that links Failures-to-Deliver to their source (rather than net settlement).
  
  
  
  • Deliver: Require forced buy-ins of Failures-to-Deliver (as is done in Canada) and make permanent the SEC’s interim hard-delivery requirement.
  
  
  
  • Enforce: Actively enforce these rules, including significant monetary penalties.