SHO Rule - Short sell / Sell

Discussion in 'Order Execution' started by arna, Dec 5, 2012.

  1. arna


    I've got question about short selling when SHO rule appear on stock.

    When stocks move down more 10% or more - it's possible to open a short position only by adding liquidity.

    But what in case if I send a SELL order (not short sell) that will be executed immediately? Which happens sometimes. Is it illegal?
  2. 1245


    You can't sell a stock short that is not on the "easy to borrow" list without a "locate" from your broker. If a stock is on the Reg sho list it means they are failing on delivery, so you will never get a locate on that stock while on the list. So no, you can't sell it short at all, but not for the reason you listed.

  3. arna


    Stocks is on ETB list. When sending / routing order to short it as 'short sell' it filled sometimes - mostly when using dark pools.

    But when sending "sell" order when SSR rule is on - the order is executed at once.

    Why? What's the difference?
  4. 1245


    There is no restriction on sell long stock. The exchange or route you choose is not relevant.
  5. Daal


    If the stock is down more than 10% you can only short sell in a uptick for that day and the next day as well