The SEC this week charged online brokerage optionsXpress that specializes in options and futures as well as its former chief financial officer, three other optionsXpress officials and a customer with conducting “an abusive naked short selling scheme.”

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.

Click here to run through the steps.

 

Register or login for access to this item and much more

All On Wall Street content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access