Lightspeed Trader Adds Short Locate Functionality

Discussion in 'Announcements' started by Robert Morse, Jul 13, 2017.

  1. FSU

    FSU

    Interesting, thanks Bob.
     
    #11     Jul 13, 2017
  2. Robert Morse

    Robert Morse Sponsor

    The located is good for the day and recycles. If I pay for 2000 shares, I can short 2000, buy back, short 2000, buy back..etc.
     
    #12     Jul 13, 2017
  3. jbusse

    jbusse

    Any sense for how your short availability / short fees compare to IB? For instance, I haven't been charged a locate fee from IB -- does this imply that they can generally find things without a fee, or that Lightspeed can locate more hard to borrows than IB, but only if the client pays a fee?
     
    #13     Jul 13, 2017
  4. Robert Morse

    Robert Morse Sponsor

    We clear Wedbush Securities. They provide the locates that are free. The Velocity Capital service is only for hard to borrow securities that we can't locate. I have no idea in any one day or any one security, if IB or Wedbush can provide a locate if the other one can't. I can tell you that very few, if any, retail brokers besides us offer third party locates. These locates that traders pay for, are generally VERY hard to locate let alone borrow overnight. That is why they get the fees they do.
     
    #14     Jul 13, 2017
  5. dennisa

    dennisa

    Robert,

    This sounds like it is for those stocks that are classified 'T' on the Level 2 screen. For those stocks that are listed as 'L' Locate will there be an automated way to request those locates? We currently need to email the short desk and I may miss out on an entry in the few minutes between request and location.
     
    #15     Jul 13, 2017
  6. Robert Morse

    Robert Morse Sponsor

    T stands for Threshold. It is my understanding that stocks on the Threshold just can't be sold short at all. L stands for locate, which means it is NOT on the ETB list. Regular locates are not automated at this time because of the concern over abuse. There is the concern that traders will ask for a lot of locates they will not use and we will have less for those that do need it.
     
    #16     Jul 13, 2017
  7. dennisa

    dennisa

    Understandable, IMHO from a backoffice perspective, just allow x number of active locates without an active position.
     
    #17     Jul 13, 2017
  8. Robert Morse

    Robert Morse Sponsor

    I have to agree. I suggested setting a limit based on account size or even just 2000 shares per request. Maybe one day. I don't make those decisions.
     
    #18     Jul 14, 2017
  9. jbusse

    jbusse

    IB automates regular locates. I tried Lightspeed for about a week until tiring of all the phone calls required for authorization to short. I'll try it again if this issue gets resolved.
     
    #19     Jul 29, 2017
  10. You can put in a locate request via email too, though the fact that it's 2017 and Wedbush locates require emails or phone calls is absurd. Just like jbusse, I mostly avoid Lightspeed these days because the locate process is annoying and slow compared to IB, ETrade and almost anyone else.
     
    #20     Jul 30, 2017