Naked short selling
Naked short selling is selling short without having borrowed the security or arranged to borrow it. Regulation SHO restricts it and requires closing out failures to deliver; the extent of its real-world market impact remains genuinely contested.
Where does naked short selling come up?
This term is used in the following manipulation techniques, each explained in full on its own page.
Enforcement actions involving these techniques
| Action | Agency | Filed | Technique | Penalty | Status |
|---|---|---|---|---|---|
| SEC v. Robinhood Financial LLC and Robinhood Securities, LLC (naked short selling debate, 2025) | SEC | 2025-01-13 | Naked Short Selling Debate , Spoofing | — | settled |
| SEC v. Maxim Group, LLC (naked short selling debate, 2023) | SEC | 2023-09-29 | Naked Short Selling Debate | — | settled |
| SEC v. Citadel Securities, LLC (naked short selling debate, 2023) | SEC | 2023-09-22 | Naked Short Selling Debate | — | settled |
| SEC v. Simplex Trading, LLC (naked short selling debate, 2023) | SEC | 2023-09-11 | Naked Short Selling Debate | — | settled |
| SEC v. Hal D. Mintz and Sabby Management LLC (naked short selling debate, 2023) | SEC | 2023-06-14 | Naked Short Selling Debate | — | filed |