res - yes, that is true on most exchanges throughout the world, just as gambling is illegal at Bushwood CC. You need a locate (someone to loan you the shares) before you can short. Locates are easier on large cap names like Apple, IBM, Newmont and more difficult on KWG, PRB, & Moront, more difficult, yes, but not impossible. A fund who has a relationship with a house can probably get a locate (borrow) on small names, but not a large amount of stock, and they may have to pay a negative rebate to the house.

Times have changed and now in many cases you have to give the person you execute trades the number and name of the person who gave you the borrow, so they can verify one actually has the borrow.

Again, a fund or individuals can short, if they have a legitimate borrow. Someone who thinks Probe is a short here, could get their faces ripped off. Which is why the short position is not a speculative one, but a hedge.