IB shorts?

I cannot believe how bad the short situation has become just in the last week (non-financial) at IB.
If this is caused by SEC Sept 18 regs, why do my buddies with Genesis get shorts on the same stocks? Same with Assent. How come these two haven't been affected compared to IB?
 
There are all kinds of cross currents out there. Some firms may be thumbing their nose at the rules. Others have huge fines to brokers who cheat. Even suspensions.

I'd be real careful of shorting any pennies at all. The brokers are buying in shares of bankrupt stocks.

Also, the IRS is looking for taxes on people who never buyin. You know, of course, if one goes kaput, with no closing transaction, there is no tax. That naked shorting gig was a good one. But it's over now.

Just be doggone sure you know what you're doing. the firms are very confused by the new rules. And if it comes down to the firm, and you, well , you know the outcome of that spat.
 
Quote from zdreg:

are u one f those who thinks that shorting is unamerican?
More...

Stock777 has long been on my ignore list...
Because the dude does not understand even VERY BASIC hedging strategies.

> 90% of all shorting by professionals...
Is to create a long/short hedged position...
NOT to make a directional short bet.

This dramatically increases "market efficiency"...
And limits on shorting dramatically decrease "market efficiency".
 
Quote from Bob111:

7358 @ 9:15.looks like it's shrinking every second...yesterday it was around 9000, day before-10K
i remember that full list is about 11-12K of securities. now only 7K is shortable? 5K of financial stocks? common...
More...

The contraction of available shorts at IB...
Started about 9 months ago.

Of my universe of 200 illiquid, hard-to-short stocks...
One year ago 80-90% were available...
6 months ago 60% were available...
Today 40% are available.

So I can short 80 out of 200... business is still good.

I had 12 Short Buy-In Orders last week...
But this is progess...
Because IB is FINALLY giving traders about one hour to close out shorts...
As opposed to the ABUSIVE practice of doing Buy-Ins after hours on an ECN...
Without any prior notification to the Customer.

It took IB 20 years to figure out...
That it's CHEAPER to just let the trader close out the short.

IB will continue to evolve here...
We have probably bottomed out with the Short List contraction...
And IB will probably find ways to start expanding that list once again.

Shorting is very lucrative for brokers...
Because a short trade usually means a long hedge trade...
So it's a big profit center for most brokers.
 
Dear dingleberrry.

90% of my trades are shorts or short hedges.

I never heard that IB was routinely closing out shorts after hours and without notice.

If that's true, I would object as well. If it's not true......

Any confirm on that?
 
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