# kaal:claim:3411110-010

**Claim.** 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.

**Type.** mechanism  **Support.** argued

**Holds when.**

- multi-day settlement regimes such as T+3

**Source quote.**

> 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, page 7

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

**Verify.** sha256 of source PDF `c7626eeb7642045b79f8745df1f7232a8fe8bc44a1f7e87b592850e35b392b50` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20and%20Evans%20-%202019%20-%20Blockchain-Based%20Securities%20Offerings.pdf

**Topics.** economics

**Keywords.** short-selling, market-manipulation, settlement-cycle, overstock

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