Centrepoint allowing locates for Threshold Securities

pragmatic-trader · Jul 2, 2020

I'm speaking to a trader who can find locates for GNUS in Centrepoint, even though it's a Threshold Security at the moment according to https://www.nasdaqtrader.com/trader.aspx?id=RegSHOThreshold

Is this typical/expected? I thought if a security appears in this list the brokers will try to cut their customers off from fresh locates.

I have no complaints about this by the way, it's pretty cool they allow this. I'm just trying to understand it.

GotherL · Jul 2, 2020

Better question were you srsly thinking of shorting GNUS though? That chart looks extremely risky.

pragmatic-trader · Jul 2, 2020

GotherL said:
Better question were you srsly thinking of shorting GNUS though? That chart looks extremely risky.

Yes I was planning on shorting $3.95 today but didn't have the locates.

Jks. I agree with you.

GotherL · Jul 2, 2020

pragmatic-trader said:
Yes I was planning on shorting $3.95 today but didn't have the locates.

Jks. I agree with you.

Try to short it a while back when it was running between $7-$12. Same story. Zero locates.

pragmatic-trader · Jul 2, 2020

GotherL said:
Try to short it a while back when it was running between $7-$12. Same story. Zero locates.

My point is that CP has locates. That's why I made the thread asking the question.

GotherL · Jul 2, 2020

pragmatic-trader said:
My point is that CP has locates. That's why I made the thread asking the question.

Idk then. But even if you can find shares to borrow that doesn't necessarily mean you can go short. I got screwed before, located shares and got hit by price restriction.

pragmatic-trader · Jul 2, 2020

GotherL said:
Idk then. But even if you can find shares to borrow that doesn't necessarily mean you can go short. I got screwed before, located shares and got hit by price restriction.

You mean SSR? GNUS isn't in SSR

GotherL · Jul 2, 2020

pragmatic-trader said:
You mean SSR? GNUS isn't in SSR

Not SSR. At TZ there is a minimum price to short a stock yet there is no restriction to locate tickers that are priced below that and waste your locate fees for nothing. (Definitely broker related.)

If CP is anywhere as dirty as TZ operates they will gladly profit out of your little mistakes as well. Not saying, that's the reason CP is allowing gnus locates to go through.

It's just an uneducated guess coming from my lack of knowledge about threshold securities.

Maybe, I am just blurting nonsense as I am not even sure if a REGSHO rule prevents short selling of a given ticker or just make it very difficult. (I don't understand the description even after googling.) But if it's the latter, that just means CP is superior for shorting stocks. They always have been.