FOLLOW-UP NOTICE OF POSSIBLE BUY-IN Based upon information available through 14:30 today, we remain unable to locate and borrow / re-borrow the shares necessary to meet delivery obligations on certain short stock positions in your account. As recent SEC regulations now strictly enforce delivery obligations, these short stock positions will be subject to forced buy-in by IB should our continued efforts to borrow or re-borrow the necessary shares today be unsuccessful. A list of stocks in your account XXXXXXX that may be at risk to a forced buy-in, based on current settlement information is provided below. You may wish to consider repurchasing your position(s) in these stocks in order to control your portfolio/risk at any time prior to the end of the current regular trading session (16:00 EST). Transactions occurring after 16:00 cannot be considered against the delivery obligation. F (*****00 shares) As noted above, we will continue to make every effort to locate and borrow the shares necessary to allow you to maintain these short positions, however, given the limited time available in the current trading session we will be unable to provide any further updates as to your account status until delivery of your daily activity statement. Please refer to the following web page and the related tabs detailing various operational details for additional information: http://www.interactivebrokers.com/en/trading/shortableStocks.php Interactive Brokers Risk Management **************************** what does it all mean? are they trying to take away my short position in F?
http://www.deepcapture.com/ford-motor-and-general-motors-f-gm-naked-short-selling/ Crowded trade, you think???
Um, thanks for the comment, but this doesn't help the guy out at all. As to his question, they're basically saying they're going to try and find the shares with no guarantee, and if they don't they'll call you in with no further notice. Sorry.
does not it sound like IB is trying to penalize me for something i have not done? why did they let me short F in the first place if no shares were available? isn't it THEIR job to make sure the shares are available?
It's not punishment. They may have origionally had the shares but they can't put a hold on those shares as they're probably borrowed from another customer. If that customer has liquidated the position and they can't find any more for you they may have no choice but to call in your short. No one really has a choice in the matter. That is one of the risks in shorting companies in bad shape.
As long as I know, at anytime the shares borowed can be called back and you have to deliver. Totally legal, business as usuall. They are making you a gift by telling you in advance you might be asked to give the shares back. So, you have the time to buy back the share and unload a complex option trade or you can make a judgment call that if you are asked, many will be and your short will lose money because many people are trying to get the shares back at the same time.
guys, thank you for explaining this to me. i had no clue. so, a giant short squeeze is possible even in F?
I really can't say that and I dont really think so. It would be very subtle and not really long tradable. Never as bad as the mother of all short squeze we got 2 months ago with the overnight ban.