Centrepoint allowing locates for Threshold Securities

Discussion in 'Trading' started by pragmatic-trader, Jul 2, 2020.

  1. 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.
     
  2. GotherL

    GotherL

    Better question were you srsly thinking of shorting GNUS though? That chart looks extremely risky.
     
  3. Yes I was planning on shorting $3.95 today but didn't have the locates.

    Jks. I agree with you.
     
  4. GotherL

    GotherL

    Try to short it a while back when it was running between $7-$12. Same story. Zero locates.
     
  5. My point is that CP has locates. That's why I made the thread asking the question.
     
  6. GotherL

    GotherL

    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.
     
    Last edited: Jul 2, 2020
  7. You mean SSR? GNUS isn't in SSR
     
  8. GotherL

    GotherL

    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.
     
    Last edited: Jul 2, 2020