Firms with the largest short list

[giggollo]

Quote from heavy:

"If a stock is not on the short list of a firm, does that mean it is IMPOSSIBLE to short it "

Not at all... usually a phone call and a 'locate' is possible. At least, at the prop firms I know.

How long does it normally take to do a locate based on your experience? Is this practical if there are say 10 or 20 stocks that need to be located? Also, i assume theres always a cost associaed with doing a locate. What is that cost on average?

 

[alanm]

At Assent, for example, you call the stock loan desk and they maintain a list of "premiums" that are shortable, but at a cost. Sometimes, the cost is negligible (like $0.015/day). Sometimes, it's outrageous (I remember something like $0.24 for BIDU last time I asked). These are immediately available if you want to pay. I haven't tried to locate anything that wasn't already on their premium list.

Most brokerages (clearing firms?) have a stock loan desk. IB doesn't (at least for the average retail trader).

 

[larrybf]

please PM me if you know which firm will regularly allow me to short the previously mentioned stocks for a fee of less than .02 cents per share ??? thanks in advance

 

[giggollo]

Yes PM me too for that. Did the moderator remove a post made by Surdo yesterday where he discussed his positive experience with shorting stocks at Carlin group or did Surdo remove it himself, im not sure. The whole point of this thread is for people to talk about their experiences at different firms with regards to how big the short list is and how easy it is to locate hard to borrow names and how costly it is...i think its quite normal that some people will have positive experieinces with some firms and some will have negative experiences, and we want to hear them all

 

[Surdo]

I do not know why it was CENSORED???

I was only trying to help, I guess someone thought otherwise.

**Moderator** please PM me why my post was removed.

 

[alanm]

Quote from larrybf:

please PM me if you know which firm will regularly allow me to short the previously mentioned stocks for a fee of less than .02 cents per share ??? thanks in advance

I assume you mean $0.02 (not $0.0002) a share?

My experience has been $0.03-$0.09/share for day 1, down to $0.01-$0.06/share on day 2+.

 

[bighitter1]

i know assent has the worst bascia short list in the industry. ib's short list seems good. i think self clearing prop firms like assent have horrible lists because few traders hold overnight so there inventory is terrible

 

[giggollo]

Quote from alanm:

I assume you mean $0.02 (not $0.0002) a share?

My experience has been $0.03-$0.09/share for day 1, down to $0.01-$0.06/share on day 2+.

What does day 1, and day 2 etc refer to in this context?

 

[giggollo]

Quote from bighitter1:

i know assent has the worst bascia short list in the industry. ib's short list seems good. i think self clearing prop firms like assent have horrible lists because few traders hold overnight so there inventory is terrible

Will the number of shortable stocks solely depend on how many clearing firm accounts are holding the stock or are there other factors?..If thats the case, then i guess to guarantee the most extensive list, one would just go with any firm clearing through Goldman or Merrill, period. What are all the firms that clear through the heavyweight clearing houses? That should give us the list of firms with the largest short list then..we already have a few Carlin, Bright through Goldman, what else..

 

[heavy]

"i think self clearing prop firms like assent have horrible lists because few traders hold overnight so there inventory is terrible"

That's not how it works. Being able to locate stock for shorts is typically done through a third party BD, if your firm is small, or self-clearing. Better daytrading firms probably have at least 2 firms they can call to locate stock.
Having long positions is irrelevant when doing a locate.