optionsXpress, now a subsidiary of Charles Schwab Corp., said its trades were neither novel nor exotic. And not shams, as the SEC contends.
Here is a step by step rundown on how the SEC says the ‘scheme’ executed by optionsXpress, involved ‘naked’ short selling, with failure to deliver the securities involved in the trades.
Then, a step by step rundown of why optionsXpress contends it always delivered on its end of the trades.
Securities Technology Monitor