I heard of a retail firm that was charging the brokers......... Please be advised that we received the following notice from our clearing firm, Penson, last night. This is effective as of 12/18/08. If you have any questions please contact the trade help desk, 718-923-3007. As you all know, we find ourselves in extraordinary times in the securities mar kets, and the stock lending segment of the market is no exception. Historically, Easy-to-Borrow securities have been highly liquid and have traded at positive r ates to borrowing parties in the market covering short sales. Due to several factors, including downward pressure on interest rates from the Federal Reserve (the fed funds rate is hovering just above zero percent,) and sh rinking liquidity due to recent SEC emergency orders, rates on many easily borro wable securities have declined to zero, and in many cases, have slipped into neg ative territory. Until now, it has been Stock Loanâs policy to identify securities trading at th ese levels and remove them from the Easy-to-Borrow List prior to publication, bu t market conditions have forced us to rethink this approach. Effective immediately, securities trading from zero to negative five percent (- 5%) interest will no longer be removed from the Easy-to-Borrow list. Securities trading at or greater than negative five percent will be catalogued as hard-to-b orrow and will not be included on the Easy-to- Borrow list. Until further notice, the Easy-to-Borrow list will merely identify highly liqui d securities â and not be an indication that the included securities can be borr owed at a positive rate. As has been the practice of charging for hard-to-borrow securities, correspondents should be advised that the costs associated with bor rowing these securities will be passed through to the customer. Please take this into consideration before carrying out short sales, as we expe ct the majority of securities to be impacted by this development.