Do not short lists with brokers at HFC co-lo?

Discussion in 'Order Execution' started by dnsdeath, Aug 15, 2005.

  1. dnsdeath

    dnsdeath

    Hello all,

    I am an automated trader who currently does so with Trillium/Schonfeld at the HFC co-lo facility. Trillium/Schonfeld has been great as a broker. They have great service, support and a decent setup over there. My main issue with them is the vast size of their "do no short" list. This is a list of securities that you are not allowed to short. Now to clarify: The list is broken up into three categories: 1. Impossible stocks to short, 2. Hard to short and 3. stocks available to short.

    Now being automated, I cannot attempt to short the "hard to short" list because I don't have time to call up the trade desk to see if the stock is available for shorting. My trading is high frequency. So because of this, I have to disregard the "impossible" and "hard to short" stocks on their do not short list.

    As of this morning, I loaded ths current list. It consists of 5204 stocks that I am not allowed to short. As the morning goes on, I find the list gets down to the 4200 range before 9:30. Now I don't know about you, but that list is HUGE. It is nearly 1/2 of the stocks in the market!

    My question is this: What are the lengths (in numbers of stocks) do other brokers who colo at HFC have for a do not short list? Are they on average smaller or larger? This list just seems crazy to me.

    Now, to give Trillium/Schonfeld the benefit of the doubt, they are working on a "short intraday" list that may free up a bunch of these stocks, but it hasn't happened yet. I guess I just like to be informed instead of going with the flow. Thanks for any input!
     
  2. dnsdeath

    dnsdeath

    Hmmm..this must be a tough question......
     
  3. zdreg

    zdreg

    what does colo and HFC stand for? you can skip the line if you have to ask the question you don't know the answer
    :)
     
  4. lescor

    lescor

    It's a problem at many firms since the new regs regarding short delivery for bd's came into effect Jan 1.
     
  5. I have automated trading strategies with two firms and at both I have had more difficulty shorting since REG SHO. I've been trading through Schonfeld using their HUBB bbox API for a little over a year. I also integrate into their short availability server which give me real time updates as to the (short) status of symbols. They reject symbols not allowed for shorting if I have not read in the last updates from the server. I talked to Schonfeld support who said there is a type of solution in the pipe line - but I didn't really get into the details yet.
     
  6. dnsdeath

    dnsdeath

    Yes, I believe that they are just stuck under SEC guidelines and are doing their best to resolve the issue.
     
  7. zdreg

    zdreg


    dnsdeath


    Registered: Aug 2005
    Posts: 3


    08-15-05 09:21 AM

    Hmmm..this must be a tough question......

    just making fun because you didn't answer my question about abbrevations


    :)
     
  8. I think HFC stands for the Harboside Facility where Schonfeld / Trillium co-locates (co-lo) with ISLD / INET. Not sure what the C stands for (maybe center). In any case, the benefit of colocating with INET is the speed of execution.