Dont be a jerk. You are engaged in a contract to borrow. I'm talking about not being blindsided. You know, like how about 2 days notice. Take a hike
If you have to cover it (wait they do it for you and I believe they might not cover it and that was just a possibility warning email. I have experienced things like that) go ahead and create the same position by options.
He's totally right, short sellers have very little rights (even non-retail ones). If it's a hard to borrow name, you can get bought in and sometimes it happens within a day. C'est la vie.
Why am I a jerk? That's just the way it works... don't shoot the messenger... There's no contract, because you don't provide fixed terms...
I was talking about what SHOULD be the case, not what is. Sounded to me like you were saying there is no possibility for improvement in the current system. Shorter borrows shares, agrees to pay a fee for the privilege. Why is that a 'no rights' circumstance. ?
Reg SHO is pretty specific and the violations are very expensive and the violation can pass a fine through to the customer. It's not pretty and re-hedging with options doesn't end the violation. Go look at the regulatory history at optionsXpress. I'll post a link when I find one and the SEC charged the customer as well. That litigation was still pending.
Well, firstly because he doesn't set a time... therefore there is no agreement on the duration and it can undone immediately. Even if there is a 'contract' with a duration, it's hard to enforce. Remember, your broker is merely the facilitator... I agree, it could be done better...
https://www.sec.gov/news/press-release/2012-2012-66htm Notice they also charged the customer. I looked at the SEC sight and the case against the customer was dismissed.
My account says it is not available for short "NOW" but things are dynamic and and it can change any time. I used to sell naked in the money calls for shares that were not available and then when the option was assigned, I was atutomatically short and they would let me keep the position