IB users who lend out their long shares..

Discussion in 'Interactive Brokers' started by IBRex&me user, Jan 6, 2020.

  1. yeahso


    Is that clearing house provisons only cover US market? How about for HK market as there is a so call CCASS CNS rules that the sold stock has to be delivered on S/D to CCASS otherwise a compulsory buy in on T3 will be made. As I know participant can claim a buyin exemption but for the case of loaned shares not delivered back on time resulting a net short to CCASS on S/D for a particular stock is not qualified as the exemption criteria. How could IB scheme aviod such situation?
    Sorry I am not quite familiar please correct anything I stated wrongly. Thanks
    #41     May 22, 2020
  2. IB-AN

    IB-AN Interactive Brokers

    Every clearinghouse, including HKSCC, has provisions to deal with member delivery fails and those provisions can include forced buy in by HKSCC. The point being made here is that we maintain a sophisticated inventory management system that makes shares available for delivery, recommends borrows, and maximizes use of inventory in all jurisdictions while satisfying clearinghouse obligations in a regulatory complaint manner.
    #42     May 22, 2020