The SEC finds that Goldman Sachs violated Regulation SHO by improperly providing locates to customers where it had not performed an adequate review of the securities to be located.
The SEC's order finds that when Goldman employees used this function to grant locate requests, they relied on their general belief that the automated model was conservative and the granting of additional locates would not result in failures to deliver when the securities became due for settlement.
The SEC's order also finds that Goldman's documentation of its compliance with Regulation SHO was inaccurate as it failed to sufficiently differentiate between the locates filled by its automated model and those filled by the Demand Team using the "fill from autolocate" function.
According to the SEC's order instituting a settled administrative proceeding, broker-dealers like Goldman Sachs are regularly asked by customers to locate stock for short selling.
Radiodetection's Web site says its RD4000 series is "best in class" for locating unit is described as being widely viewed as the industry standard, with the highest locate
performance, multiple locate
modes and ease of use for locating utilities, marking for construction, mapping or fault finding.