Isn't there a way to bypass the borrow requirement other than using the options market? Not every ticker I short has an option. If I kept the short for a few days and close before it settles (T+2) would it satisfy the REGSHO requirement? Below is my strategy performance with the huge expense structure I have with CenterPoint.
- Rule 203(b)(1) and (2) – Locate Requirement. Regulation SHO requires a broker-dealer to have reasonable grounds to believe that the security can be borrowed so that it can be delivered on the date delivery is due before effecting a short sale order in any equity security. This “locate” must be made and documented prior to effecting the short sale.