possibility of forced buy-in for BA

Discussion in 'Stocks' started by shortie, Aug 4, 2010.

  1. got IB message to that respect.

    However, as of 14:30 EST, the borrow transactions have not yet settled. This may be simply a result of delayed processing on the part of the lender, and the transactions may settle any time up until the end of the clearing cycle at 15:10. Occasionally, transactions do not settle properly which can create a buy-in condition for the borrower (your account). Unfortunately, the current regulatory framework does not distinguish between the various reasons that cause a failure to settle a short sale: failure to find the stock to borrow, and operational problems with a contracted borrow both create a "fail" condition. By SEC regulation, fails require a buy-in transaction on the first business day following the failure. _ Contracted borrows will often resolve themselves so this notification is intended to provide you with the most current information. IB will try to provide additional updates as they become available. _ Alternatively, repurchase of your position(s) in these stocks prior to the end of the current regular trading session (16:00 EST) will ensure the account will not be subject to a forced buy-in at the open of the next trading session. Transactions occurring after 16:00 will not satisfy the delivery obligation. For complete information relating to short sale practices, please refer to the following web page: http://www.interactivebrokers.com/en/trading/shortableStocks.php _
  2. BA

  3. **update:

    Based upon the information available at 14:30 ET today, IB provided notice of certain short stock positions in account xxxx which may be subject to a buy-in. This alert is to inform you that IB has since been able to locate the shares in full for the positions previously detailed. As such, the account will not be subject to a buy-in on the below stock(s)
  4. What happened to BA price while that notice were there?
  5. nothing really
  6. zdreg


    how was the issue resolved?