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David Portnoy's reply to cnbc feed is the perfect ending to 2020.

Yes. Comments are still accepted. Best David

Sec Lending is not a tax deferral issue. It is maintaining the original basis in appreciated assets. It is my intention to keep the exchange open into 2020. If that changes I will let you know. Best David

No taxpayer would ever use any option strategy to lend their securities. Only those who take mark to market accounting find the options of use via rev/con. Best David

Anyone can comment.

You could always send in a comment to the CFTC or SEC on their joint rulemaking regarding margins. Even if you don't agree with my position it is important for the Commissions to understand all views. It is in their hands at this point and when they come out with final rules I will certainly...

That would be a travesty. It is retail who pays the highest financing rates. If we can get to risk based margin then the product becomes more attractive to market makers who are not self clearing entities. As these groups are considered 'customers' of a clearing firm they are subject to...

Monthly spread activity will continue but I am not sure any broker will allow you access. The issue is Securities Lending. See our discussion on STARS. Best David

Hello all, The screens are going to go dark after December expiry. If you want to understand why you can read here: https://www.sec.gov/comments/s7-09-19/s70919.htm Best David

Today's rate to borrow is ~3.85%. To get your effective borrow you subtract that interest rate from the rate your brokerage pays you for idle cash balances.

Ah, there are ways to accelerate expiries. Exchange of Future for Physical was the historical transaction for this and it remains available but severely limited. We use to offer them but the SEC didn't like it so we came up with a new transaction. Securities Tranfer and Return Spreads or...

I do appreciate your concern but you seem to be missing something. If one party is paying 3bps then another party is earning them. For customers who are getting 1.8% for idle cash the extra 120 bps would indeed seem attractive. For those with HTB names in their cash accounts they could be...

Hello, Rumors of the death of SSF are exaggerated. https://ftp.onechicago.com/market_data/trade_history/ The above link is updated intraday at 15 minute intervals. It shows exchange activity and if you are a trader looking for buy/sell opportunities OneChicago is not the place. I have...

These transactions were called 'Yield Enhancement Trades" and were effectively eliminated by the enactment of IRS rule 871(m). The US Delta 1 trade desks would enter into a Securities Lending transaction with the Off-Shore party. The Off-Shore would deliver the stock just before record date...

http://www.nasdaqtrader.com/TraderNews.aspx?id=ETA2018-99

In retrospect it would appear so. Thank you for bringing it to my attention. I have sent Mr. Morse a private note.

It was discussed on an industry call yesterday afternoon. I had follow up conversations with OCC yesterday evening as we ironed out details. Fidelity Action Services laid out the exact information in a circular this morning. Are you not in the business?

All US corporate action events with a Dec 5 2018 ex-date will be adjusted to an ex-date of Dec 6 2018.

Calendar spreads using Security Futures. Buying soon to expire (and go through delivery which requires you to deploy cash) and simultaneously Selling a longer dated contract at an interest rate differential. The long SSF(long stock)/Short SSF position is delta one with no need to re-balance...

No taxpayer would transfer an appreciated asset and replace using options or combinations of options as that would trigger a tax event. Using STARS they could preserve the basis upon the return of the securities and capture the HTB rate without being exposed to exercise/assignment, pin risk...