The DTC protects their members who short non-marginable stock and in some instances loan the offenders the stock. Under the rules non-market maker's are required to deliver stock within 10 days of sale. That rule is never enforced. If the SEC enforced the rules on delivery, that would cause the shorter's a lot of grief. It is all a sham.
Enforcement is the ony way to solve the problems of the small cap market.
Shorting should never be allowed, because of the hardships imposed on small companies for raising capital. The shorts know this and when they short they go out to the Media and internet and bash the companies to put fear into the small investor and have him sell his stock generally at a loss. The system can be cleaned up with enforcement of current rules. Thank You, Robert Quiel 79013 Bayside Ct.