Judge wrote to Huntsman, "This unique requirement and fear of liability for missed notifications may cause member firms to limit their interaction with Utah companies."

He added, "This is the opposite of the bill supporters' hope . . . would attract business to Utah."

Larson said the SIA in considering many options to fight the new law, "including the option of legal recourse."

However, Blevins said the newly enacted bill "reaffirms an existing (federal) law that is not being enforced. Wall Street bankers or securities firms should only be concerned if they are breaking the law. Fortunately, we have a governor and Legislature who believe the rule of law should be upheld."

The bill affects only trading in Utah. And while most trading occurs elsewhere, the new law gives Byrne a small victory.

"I think it is a starting point," Blevins said. "It is common for legislation to start at the state level. . . . Its purpose is to shed light on the issue of unsettled trades."

He also said that big donations by Byrne may actually have made passage of the new law more difficult instead of easy.

"It is more of a hindrance because of the perception problem. No one wants to be accused by a reporter of having improper motives. This story is a good example. Our governor is highly ethical." Blevins adds that Byrne has made no donations to Huntsman since naked short selling became an issue with Overstock.com.

Among the donations that Patrick Byrne or his Overstock.com have given in recent years include $25,300 to the Utah Democratic Party; $1,000 to state Sen. Carlene Walker, R-Sandy; $250 to state Senate Minority Leader Mike Dmitrich, D-Price; $5,000 to Rep. Chris Cannon, R-Utah; $5,000 to Sen. Orrin Hatch, R-Utah (and $5,000 more to a Hatch political action committee); $2,000 to Sen. Bob Bennett, R-Utah; and $1,000 to Rep. Jim Matheson, D-Utah.

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Contributing: The Associated Press

E-mail: bbjr@desnews.com; lee@desnews.com