kaal:claim:3411110-010

Naked or out of the box short selling is possible only because settlement takes three days, so eliminating the window between trade and settlement on a blockchain eliminates that abuse.

Source quote, verbatim

This tactic is only possible because it takes three days to settle a trade. By eliminating the window between trade and settlement, the blockchain eliminates out-of- the-box shorting.

From

Wulf A. Kaal, Samuel Evans, Blockchain-Based Securities Offerings (2019), II. Overstock Blockchain Securities Offering, footnote 11, p. 7
https://ssrn.com/abstract=3411110 · source PDF

Cite as

Wulf A. Kaal, Samuel Evans, Blockchain-Based Securities Offerings (2019). SSRN: https://ssrn.com/abstract=3411110

Holds when

multi-day settlement regimes such as T+3

Classification

mechanismsupport: arguedeconomics

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