How hard is it to automate Short borrowing.

P

PocketChange

There are billions of dollars in technology deployed and connecting all of these brokers, exchanges and regulators.

How hard would it be to establish a centralized electronic exchange for tracking and loaning shorts? Charge a nominal exchange fee per transaction.. Make it visible and serialize the shares available for loan...

Screw the uptick rule... Just make pre-borrow mandatory...
This electronic exchange can clear instantly and settle daily.

Brokers and clients get a receipt... transaction ID and everyone is happy.

This is not rocket science to automate... Hell Tax it $1 for the bail out slush fund.
 
Shorting is evil and un-American, why would anyone want to assist shorts? :D :D :D It's much better to assist the CEOs of all the failing banks.
 
See locatestock.com. John Tabacco started it, and Harvey Pitt joined him. He's hurting right now. I heard today GS, no shorting at all.

But it is automated, and he'll do very well. But he's got a few months to wait.

Heard today they want to outlaw daytrading too. The industry got stupid, and the politicians are not going to take that hit.
 
its not that its hard to automate. its that people do not want it automated. there's a lot of money to be made as middle men in opaque markets.
 
I completely understand the skimming angle...

SEC would need to merge with the FBI in order to enforce their rules. Its not a crime unless convicted...

Obviously the feds and big money needed a way to slow down the market.

Seems like everything the Government regulates or trys to control is even corrupt than before...

Tobacco Settlement (Big scam protecting the profits of the tobacco companies and jacking taxes to the consumer)

ERISA.. certainly does not benefit anyone but the insurance company.

People cheat.. fact of life.. just adjust and deal with it.

I think one of the real problems no one talks about is the transparency to exchange prices and the ability for retail traders to play near real time.

Orders route and are filled in under a second. News is instantaneous. This ability did not exist 10 years ago.

Real time instantaneous settlements protects everyone's interest. Just like credit card transactions... you get an authorization code and everything flows...
 
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