New Short Sale Rules issued by the SEC today will go into effect on Thursday.

"These several actions today make it crystal clear that the SEC has zero tolerance for abusive naked short selling," SEC Chairman Christopher Cox said in a statement.

Brokers failing to comply will be prohibited from further short sales in the same security unless the shares are pre-borrowed. The prohibition on the broker will also apply to all of its customers. (If Scottrade fails to deliver on Sirius, nobody that uses Scottrade to trade would be able to short Sirius.)

[Via Yahoo Biz]

Position: Long SIRI